Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Microfinance Institutions (MFIs) have agreed to return Rs 1.60 billion that they had taken in service charges from their clients concerned.
In a meeting with Finance Minister Bishnu Pradsad Paudel on Wednesday, executives of the MFIs expressed their commitment to return the aforementioned amount at a time when a growing number of debtors of these MFIs are found to be committing suicide due to their heavy financial liabilities.
The MFIs also expressed their commitment for not charging service charges of more than 1.5 percent annually from their clients. Likewise, service seekers will now be allowed to take loans from only a single MFI.
As of now, a large number of such MFIs have been found issuing loans to an individual. As a result, a debtor is overburdened with the loan amount at a time when they have to clear their outstanding dues.
Likewise, the MFIs have also agreed to prepare details about the debtors who are unable to clear their credit amount due to adverse situations that they have had to face. For this purpose, the institutions will be providing relief to these creditors by setting a customers’ protection fund.
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