Bittiya Sanstha Ltd.
209 Milijuli Marg, Narayan Gopal Chok
Maharajgunj, Kathmandu, Nepal
Email: firstname.lastname@example.org/ email@example.com
Laxmi Laghubitta Bittiya Sanstha Limited (LxLB), a microfinance subsidiary of Laxmi Bank Limited (a commercial bank of Nepal), is a national level microfinance institution licensed by Nepal Rastra Bank, the central bank of Nepal. It is the first microfinance institution to be registered as a subsidiary of a commercial bank in Nepal. Registered as a limited company on 30th November 2010, LxLB received operating license from central bank as "D" class (National Level) financial institution on 6th March 2012 to operate under Bank and Financial Institution Act 2003. It started formal microfinance operation from June 4, 2012 from its first branch office located in Battar, Nuwakot.
Compulsory Savings (CS): This is mandatory Savings and is linked with loan disbursement. The clients are required to deposit 4% of their loan disbursement in this account. This product is designed to encourage saving habits of clients as well as to provide safety net for both LxLB and client. Clients earn 8% interest on these savings. The clients can withdraw the amount from this saving as and when required keeping at-least 10% of loan outstanding or Rs. 500.00 whichever is higher.
Samriddhi Savings (SS): This is the voluntary saving product offered to all its clients. A client can open his/her account with a minimum of Rs.10.00. Clients earn 8% interest on this saving. S/he can deposit in this account when he or she has surplus and withdraw from this account as per his/her needs.
Sunaulo Bhabisya Bachat Khata (Recurring Saving Account): The members of LxLB can open recurring saving account for the period of 3 years or 5 years. Recurring savers are required to deposit Rs. 100 or multiple of 100 per month for agreed period. The maximum amount that can be deposited monthly by a client is Rs. 1000.
1 Loan: 16% to 20%
2 Saving: 8% to 8.5 %
Income Generating (IG) Loan: After completion of the compulsory group training (CGT) and group recognition test (GRT) clients are eligible to take IG Loan. Clients choose their project as per their own knowledge about any kind of IGA, and can submit loan application at the center. The maximum Loan amount per client is NPR 100,000 and available at 20% interest rate charged on declining basis.
Social/Consumption Loans (SC): Beside the Income generating Loan (IG Loan) the LxLB try to satisfy the Social and Consumption need of the clients by providing Social/consumption loans. The maximum amount for this Loan is NPR 20,000 and provided at 20% interest rate for maximum period of 18 months.
Group-based Micro-enterprise Loan (GME): This loan product is designed to satisfy credit need of micro-entrepreneurs. It is provided to graduated clients from the groups. The maximum loan amount of this loan is Rs. 300,000 and is provided for maximum 3 years period at the rate of 16% per annum. Project viability, client's integrity and the physical collateral are the basis to provide this loan.
Individual Micro-enterprise Individual (IME) Loan: LxLB provides IME loan to the missing middle or poor clients who do not wish to join groups for various reasons. The maximum loan amount of this loan is Rs. 90,000 and is provided for maximum 3 years period at the interest rate of 16% per annum. Project viability, client's integrity and the physical collateral are the basis to provide this loan. The physical collateral will be required to avail this loan
Alternative Energy (AE) Loan: Group Based clients and other individulas willing to establish/install alternative energy system are target clients of this loan product. The finance is vailable to establishment/installation of Biogas Plant, Home solar system, water turbine, water mill (Pani Ghatta) and other energy producing systems.The maximum loan limit is Rs. 30,000 for without collateral and Rs. 60,000 for colateralized loans. The interest rate charged for this loan product is 16% p.a.
Seasonal Agricultural (SA) Loan: This loan product is available to group based clients to finance inputs for seasonal agricultural production like Purchase of seeds, fertilizer, insecticides and pesticides. The loan is also be available for purchase and sale of agricultural products. Maximum limit for this loan is Rs. 30,000 and provided at 20% interest rate per annum.
Over the years microfinance has transformed drastically. Started through an NGO and cooperatives as grass root movement, microfinance is now offered by specialized banks and institutions.Laxmi Laghubitta Bittiya Sanstha Limited (LxLB), Nepal is such specialized microfinance financial institution promoted by an established commercial bank of Nepal, Laxmi bank Limited.