Microfinance Solution

Nepal is one of the first countries in South Asia to start microfinance services by introducing microfinance institutions (MFIs) as a means to provide credit access to those who have no access to mainstream financial institutions. MFIs were originally seen as solutions for lifting grassroots people out of poverty by offering loans, facilitating savings and providing insurance options to the disadvantaged groups. After three decades of operation, MFIs, instead of bringing substantial changes in people's lives, have emerged as new loan sharks, and have arguably drifted away from the very idea of MFIs.