Micro Banking Introduction

In the words of Kofi Anann, former UN Secretary General “Microfinance is a way to extend same rights and services to low income households that are available to everyone else. It protects people against shocks and allows the majority of the population to become part of country’s economic activity. It can help to build markets and show that profits and principles can reinforce each other”.

As rightly pointed out in above statement, even the people living in the bottom of the pyramid required financial services to build their respectable life. Through Micro Banking services, MNBBL provides financial services to lower income people mainly poor and very poor. The loans are provided to individual as well as in groups with collateral and non- collateral even with the lower ticket size of NRs. 1,000.00.

True to its vision and mission, the Bank is focusing its Micro, Small and Medium Enterprises (MSME) services to rural and underserved households who are striving for financial services. MNBBL through Micro Banking manages microfinance activities of the bank. Under the MB, there are MSME service delivery desk at branch level which provides retail services including credit, savings, and remittance and social security schemes to the target clientele.  Effective client targeting, streamlined loan sanction processes and strict credit discipline are contributing factors of MNBBL microfinance programme to meet its dual objective of financial self-sustainability and outreach.