Banks have excess cash, poor Nepalis can’t borrow it
Summary
Thousands of Nepalis remain trapped in predatory loan sharking despite an expanding banking network in Nepal, exposing a financial inclusion crisis where poor citizens cannot access formal credit despite banks holding excess liquidity.
Key Points
- Thousands of Nepalis are trapped in debt due to predatory moneylending practices with inflated loan amounts and exorbitant interest rates.
- Over 24,000 formal complaints against moneylenders charging illegal interest have been filed nationwide following government negotiations.
- Nepal's banking system boasts extensive branch coverage but fails to provide accessible, tailored credit to low-income and marginalized populations.
- Despite Nepal's banks holding over Rs1.5 trillion in excess liquidity, many vulnerable citizens cannot meet collateral and income documentation requirements to borrow formal loans.
