Question 1

What is CYC Nepal Laghubitta Bittiya Sanstha Limited?

Accepted Answer

CYC Nepal Laghubitta Bittiya Sanstha Limited is a microfinance institution in Nepal operating as a Class 'D' financial institution licensed by Nepal Rastra Bank, the country's central bank. The institution provides microfinance services primarily to low-income individuals and small entrepreneurs.

CYC Nepal was previously known as CYC (Chartare Youth Club) and evolved from a community organization into a formal microfinance institution. The institution specializes in providing microfinance loans based on the Joint Liability Group (JLG) model, where each group consists of a minimum of five members who collectively guarantee loan repayments.

Question 2

When was CYC Nepal Laghubitta Bittiya Sanstha Limited founded?

Accepted Answer

CYC Nepal Laghubitta Bittiya Sanstha Limited was incorporated on July 1, 2018, and registered as a public company on February 11, 2019. The institution commenced formal microfinance operations on March 15, 2019, after receiving its license from Nepal Rastra Bank.

On March 14, 2023, CYC Nepal merged with Adhi Khola Laghubitta Bittiya Sanstha Limited (AKBSL) with a swap ratio of 100:70 (CYCN:AKBSL), expanding its operational capacity and geographic reach.

Question 3

Where is CYC Nepal Laghubitta Bittiya Sanstha Limited headquartered?

Accepted Answer

CYC Nepal Laghubitta Bittiya Sanstha Limited is headquartered in Sabhagriha Chowk, Pokhara, Nepal. Pokhara is Nepal's second-largest city and serves as a major commercial center in the country's western region.

Question 4

Where does CYC Nepal Laghubitta Bittiya Sanstha Limited operate?

Accepted Answer

CYC Nepal Laghubitta Bittiya Sanstha Limited operates as a national-level microfinance institution across Nepal. Following its 2023 merger with Adhi Khola Laghubitta, the institution expanded its branch network and service coverage.

The institution operates multiple branches throughout Nepal, focusing on serving rural and semi-urban communities where access to formal financial services is limited.

Question 5

What services does CYC Nepal Laghubitta Bittiya Sanstha Limited offer?

Accepted Answer

CYC Nepal Laghubitta Bittiya Sanstha Limited provides microfinance services including savings accounts, microloans, and related financial products. The institution primarily uses the Joint Liability Group (JLG) lending methodology, which promotes financial inclusion by providing collateral-free loans to groups of borrowers.

Services are designed to support income-generating activities, microenterprises, and small businesses. The institution focuses on serving low-income households, women, and marginalized communities who typically lack access to traditional banking services.

The institution also offers remittance services and other financial products tailored to the needs of its target clientele.

Question 6

What makes CYC Nepal Laghubitta Bittiya Sanstha Limited unique?

Accepted Answer

CYC Nepal Laghubitta stands out for its community origins, having evolved from the Chartare Youth Club into a regulated microfinance institution. This grassroots foundation gives it deep connections to the communities it serves.

The institution's Joint Liability Group model promotes financial inclusion by enabling individuals without traditional collateral to access credit through collective guarantees. This approach has proven effective in Nepal's microfinance sector for reaching underserved populations.

As a licensed Class 'D' institution under Nepal Rastra Bank's regulatory framework, CYC Nepal operates within the country's formal financial system while maintaining its focus on microfinance and financial inclusion.

Question 7

What type of financial institution is CYC Nepal Laghubitta Bittiya Sanstha Limited?

Accepted Answer

CYC Nepal Laghubitta Bittiya Sanstha Limited is a Class 'D' financial institution in Nepal's banking classification system. Class 'D' institutions are microfinance development banks (also called Laghubitta Bittiya Sanstha) licensed specifically to provide microfinance services.

These institutions operate under Nepal Rastra Bank's regulatory framework but are distinct from commercial banks (Class 'A'), development banks (Class 'B'), and finance companies (Class 'C'). Class 'D' institutions focus exclusively on microfinance activities, serving low-income populations and promoting financial inclusion in underserved areas.

CYC Nepal Laghubitta Bittiya Sanstha Limited

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About CYC Nepal Laghubitta Bittiya Sanstha Limited in Nepal