Governor Nepal: Take Microfinance to Remote Areas

May 16: Nepal Rastra Bank’s Governor Dr Chiranjibi Nepal has urged microfinance to work in remote areas of the country. He warned that microfinances companies that are reluctant to go to remote areas will have to face cancelation of their licenses. Dr Nepal  was speaking on the inauguration program of ‘National Microfinance Member Conference 2073’ held at the capital on Sunday.

“Microfinance programs centralised in urban areas are likely to lead to frauds. We are also mapping the areas that microfinance should reach,” says Nepal.

He suggested to decrease interest rate on loans provided by microfinance companies. "Microfinances need to decrease interest rates although their capital expenditure is high,” says Nepal, “The poor are hard hit by the high interest rates.” NRB recently opposed the government decision to set interest rate on loan provided by the microfinance companies. As per the decision, microfinance companies can charge maximum of 18 percent interest rate on loans.