Microfinance Loan Calculator
Calculate EMI for microfinance loans for small businesses and entrepreneurs.
Calculate Microfinance Loan
Loan Breakdown
Microfinance in Nepal
Microfinance institutions provide small loans to entrepreneurs and small businesses, especially those without traditional bank access.
• Loan amounts: NPR 50,000 - 10 lakh
• Interest rates: 15-22% per year
• Tenure: 1-5 years
• Minimal collateral required
• Group guarantee acceptable
• Quick processing (1-2 weeks)
Major microfinance banks in Nepal:
• Nirdhan Utthan Bank
• Swabalamban Laghubitta
• Chhimek Laghubitta
• Nerude Laghubitta
• Mithila Laghubitta
Priority borrowers: Women, Dalits, disadvantaged groups, rural entrepreneurs
FAQs
What is microfinance?
Microfinance provides small loans to low-income individuals and small businesses who lack access to traditional banking services.
Do I need collateral for microfinance loans?
Usually not for small amounts. Group guarantee (5-10 members) or movable assets are often sufficient. Larger loans may need property.
Why are microfinance rates higher than banks?
Higher operational costs (serving many small loans), higher risk (lending to unbankable clients), and lack of collateral.
Can I get a loan for any business?
Most productive businesses qualify: shops, agriculture, handicrafts, services. But not for speculation, gambling, or illegal activities.
What if I can't repay on time?
Contact the institution immediately. They may offer restructuring. Defaulting damages your credit and affects group members if it's a group loan.