Small borrowers ruined by exorbitant interest rates

Insiders say the actual number of victims of microfinance companies may be in the hundreds of thousands.

Former owner of a retail store Dil Kumari Karki now washes dishes after going bankrupt. Karki had opened a small grocery in Rautahat with Rs100,000 borrowed from neighbours. She expanded the shop by borrowing more money, and eventually her loans piled up to Rs450,000.