Partner Organization

Madhya Paschimanchal Gramin Bikas Bank provides financial system originated in Bangladesh by Prof. M. Yunus. The members are provided loan for their self-employment and income generation. MPGBBL has five major types of non-collateral loan i.e. general loan, seasonal loan, project loan, TLDP loan and miscellaneous loan. The members are also benefitted by group fund loan from their group fund saving.

General Loan:
General loan is the main portfolio that is disbursed in MPGBBL to its member clients. The loan is disbursed in-group guarantee basis to the individuals. It is repaid in weekly installments with interest. The loan ceiling is Rs. 15,000 for the first year members and it is Rs. 60,000 for the fifth year and above. The general loan ceilings are given as follows:

            First year loan            Rs. 15,000
            Second year loan       Rs. 25,000
            Third year loan           Rs. 35,000
            Fourth year loan         Rs. 45,000
            Fifth year & above      Rs. 60,000

General loan can be utilized for any of the productive purposes. Projects that support in daily income are highly prioritized. Projects like small milking cows and buffaloes, goats, chicken rearing; tea shops, groceries, bamboo works, nurseries, beaten rice industry, fresh house, tailoring, painting etc are the examples that are supported by the general loan service. Interest rate on general loans is 20% (diminishing balance). The repayment period is one year either in fortnightly or monthly installments.

Seasonal Loan:
Members who have completed the first loan cycle are eligible to draw seasonal loan. The seasonal loan is special loan for seasonal cash crops, and trading purpose and it is repaid in one year either fortnightly or monthly. The ceiling for this type of loan is Rs. 60,000 and interest rate is 20% (diminishing balance).

Special Loan:
It is designed to the borrowers who have completed the first general loan cycle and who have acquired enough entrepreneurial skills and knowledge to run the projects. Under this loan, the security will be the business they render. The loan ceiling is Rs. 90,000 and the duration of loan will be for a maximum period of one and half years. The interest rate is 20% on diminishing balance.

Third Livestock Development Project Loan:
Under the Third Livestock Development Project (TLDP) of Government of Nepal, MPGBBL provides livestock to its members and other referred by LAT (Livestock Action Team). This loan ceiling is Rs. 60,000 and provided on collateral basis payable in monthly installments within two years. The interest rate is 20% on diminishing balance.

Miscellaneous Loan:
Miscellaneous loan consist of tube well loan, toilet loan, bio-gas loan, solar loan etc. Interest rate on these loans is 20% on diminishing balance.