MFI Report

1. Loan products:
a) General loan: Rs. 1,000 to Rs. 20, 000
b) Discipline loan: Maximum Rs. 30, 000 including General loan
c) Micro Enterprise loan: Maximum Rs. 100000 including General loan and Discipline loan
d) Unit house Loan: Rs. 1,000 to 50,000

2. Saving products: The bank has offered four types of savings products. The bank pays 8% interest in daily balance
method to all kinds of savings. They are followings:
a) Monthly saving: It is compulsory to every member to save Rs. 30 monthly. This fund is refundable if the saving is more than Rs. 5,000.

b) Disaster saving: At the time of taking loan, borrowers have to save 5% of the total loan amount. This fund will be provided in the time of disaster cases like flood, landslide, fire, snakebite, earthquake, thunder etc. Otherwise they will
get the first saving only after 5 years of the savings.

c) Optional saving: It is a current account for the members. To open the account, Rs 100 is necessary for minimum balance. From this account the members can deposit and allowed to withdraw any amount from their account.

d) Unit fund: This fund is created for helping the members to make Unit house, necessary materials for the meeting, training, and social welfare work. It is compulsory to save Rs. 5 per unit member in this fund monthly.

3) Security fund: The bank has managed two types of security fund.
a)Animal security fund:When the clients take out a loan for big livestock, they have to pay 5%premium of loan amount to preserve livestock. If the animal died in the period of preservation time, the clients will gate 75% of total amount
instead of loss.

b) Member security fund: In the time of taking the loan from the bank, compulsorily the program members should save 1% of loan amount in member security fund. This fund operation compensates in the death of borrower, which provides cent percent of loan amount or if in the case of guardian’s death, the borrower will get Rs. 1,500 as compensation.

4) Disciplined member welfare fund: This fund is created for the disciplined unit. Every disciplined unit can get Rs.
250 monthly. This amount of money can be used in the work of their need by their selves such as education, health etc.
The bank’s mission is to extend financial services and social awareness to poor in under-served and UN –served areas of Nepal in a sustainable manner.

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