Question 1

What is Dhaulagiri Laghubitta Bittiya Sanstha?

Accepted Answer

Dhaulagiri Laghubitta Bittiya Sanstha Limited (DLBSL) is a microfinance institution in Nepal licensed as a national level "D" class financial institution by Nepal Rastra Bank, the country's central bank. The institution focuses on providing microfinance services to rural, unbanked populations to contribute to poverty reduction through increased production and productivity in rural Nepal.

DLBSL operates primarily using the Joint Liability Group (JLG) model, where loans are provided to groups of minimum five members who share collective responsibility for repayment. As of 2021, the institution has expanded to 58 branch networks across different districts of Nepal.

Question 2

When was Dhaulagiri Laghubitta Bittiya Sanstha founded?

Accepted Answer

Dhaulagiri Laghubitta Bittiya Sanstha was incorporated on 3 July 2018 as a Public Limited Company under Company Act 2063 of Nepal. The institution received its license from Nepal Rastra Bank on 19 February 2019 and commenced operations in February 2019.

The institution was established by taking over the operations of Dhaulagiri Community Resource Development Center (DCRDC), a financial intermediary NGO that had been conducting microfinance activities since 2001. This transition transformed the community-based microfinance program into a regulated national-level microfinance institution.

Question 3

Where is Dhaulagiri Laghubitta Bittiya Sanstha headquartered?

Accepted Answer

The head office of Dhaulagiri Laghubitta Bittiya Sanstha is located at Baglung Municipality 2, Shreenagar Tole, Baglung, Nepal. This location is in the Baglung district of Gandaki Province in western Nepal.

Question 4

Where does Dhaulagiri Laghubitta Bittiya Sanstha operate?

Accepted Answer

Dhaulagiri Laghubitta Bittiya Sanstha operates across 19 districts in Nepal, with presence in four provinces through 43 branches as of July 2021. The institution's geographical diversification enables it to serve varied customer bases across different economic regions, reducing the risk of volatility from any single area.

The institution specifically targets rural and underserved areas, establishing branch networks in locations where traditional banking services are limited or unavailable. This rural focus aligns with its mission to provide financial services to the deprived and unbanked population of Nepal.

Question 5

What services does Dhaulagiri Laghubitta Bittiya Sanstha offer?

Accepted Answer

Dhaulagiri Laghubitta Bittiya Sanstha primarily provides microfinance loans based on the Joint Liability Group (JLG) model to female group members. The institution offers various loan products with a particular concentration on agricultural sector lending, reflecting the rural nature of its target market.

In addition to credit services, DLBSL accepts deposits from members and provides savings facilities. As of fiscal year 2021, the institution's credit portfolio stood at Rs 1,027 million with a deposit base of Rs 515 million. The institution also provides basic financial literacy and consultation services on micro-credit to its members.

Digital services are limited, with the institution primarily operating through physical branch locations to serve its rural customer base. Contact and grievance handling services are available through designated officers at the head office.

Question 6

What makes Dhaulagiri Laghubitta Bittiya Sanstha unique?

Accepted Answer

Dhaulagiri Laghubitta Bittiya Sanstha builds on nearly two decades of grassroots microfinance experience, having evolved from a community-based financial intermediary NGO that started in 2001. This foundation provides the institution with deep understanding of rural financial needs and community-based lending models.

The institution focuses specifically on empowering women through group-based lending, targeting deprived families and low-income communities. Its geographical diversification across 19 districts and multiple provinces demonstrates a commitment to reaching underserved areas where traditional banks typically do not operate.

Despite being a relatively young institution in its current form, DLBSL achieved significant growth, with its credit portfolio increasing by 30% and deposits growing by 12% in fiscal year 2021. The institution's CEO, Shiva Ram Joshi, emphasizes the organization's commitment to delivering microfinance services in rural areas through a dedicated team supported by promoters and stakeholders.

Question 7

What type of financial institution is Dhaulagiri Laghubitta Bittiya Sanstha?

Accepted Answer

Dhaulagiri Laghubitta Bittiya Sanstha is a microfinance institution classified as a "D" class national-level financial institution under Nepal's banking regulatory framework. This classification is specific to Nepal's financial sector structure, where microfinance institutions are licensed and regulated by Nepal Rastra Bank to provide specialized financial services to underserved populations.

As a microfinance institution, DLBSL is distinct from commercial banks (Class A), development banks (Class B), and finance companies (Class C). The "D" class designation allows it to focus specifically on providing micro-credit and savings services to low-income and rural populations, with operational requirements and capital adequacy standards tailored to the microfinance sector.

Dhaulagiri Laghubitta Bittiya Sanstha

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About Dhaulagiri Laghubitta Bittiya Sanstha in Nepal