Question 1

What is Matribhumi Laghubitta Bittiya Sanstha Limited?

Accepted Answer

Matribhumi Laghubitta Bittiya Sanstha Limited (MLBSL) is a national-level microfinance institution licensed by Nepal Rastra Bank (NRB), the central bank of Nepal, as a Class 'D' financial institution. The institution is incorporated as a public limited company under the Companies Act, 2063 (2006).

MLBSL focuses on providing financial services to low-income people, especially women in rural and underserved areas of Nepal. The institution operates through an extensive network of 236 branch offices across 60 districts nationwide, making it one of the larger microfinance institutions in the country.

Question 2

When was Matribhumi Laghubitta Bittiya Sanstha Limited founded?

Accepted Answer

Matribhumi Laghubitta Bittiya Sanstha Limited was formed through a series of strategic mergers beginning in 2019. The institution has a unique history as the result of seven microfinance institutions merging together.

The merger process began with NRN Laghubitta Bittiya Sanstha Ltd., which was originally promoted by Non-Resident Nepalese (NRN), bankers, retired government officials, and other reputed personalities. On September 10, 2019 (24th Bhadra 2076), NRN Laghubitta initially acquired two smaller regional microfinance institutions: Creative Laghubitta and Ramarosan Laghubitta.

Subsequently, on July 13, 2020 (29th Asar 2077), NRN Laghubitta, Kisan Microfinance, and Dibya Laghubitta merged and began joint operations. On October 4, 2020 (18th Ashwin 2077), the institution changed its name to Kisan Laghubitta Bittiya Sanstha Ltd.

The final merger occurred on July 11, 2024 (27th Ashar 2081), when Kisan Laghubitta and Jalpa Samudayik Laghubitta (which included Mahila Samudayik Laghubitta) merged to form Matribhumi Laghubitta Bittiya Sanstha Limited, bringing together seven microfinance institutions in total.

Question 3

Where is Matribhumi Laghubitta Bittiya Sanstha Limited headquartered?

Accepted Answer

Matribhumi Laghubitta Bittiya Sanstha Limited has its head office located in Lamkichuha Municipality Ward No. 4, Kailali district in far-western Nepal. The institution also maintains a corporate office in Budhanilakantha Municipality Ward No. 8, Kathmandu, the capital city of Nepal.

This dual-location structure allows the institution to maintain strong connections with its rural roots in Kailali while having administrative presence in the capital for regulatory compliance and strategic management.

Question 4

Where does Matribhumi Laghubitta Bittiya Sanstha Limited operate?

Accepted Answer

MLBSL operates throughout Nepal with a presence in 60 districts across all regions of the country. The institution has established 236 branch offices that serve communities from the far-western regions to the eastern plains.

The institution's branch network covers all major regions including the eastern Terai, central hills, mid-western valleys, and far-western mountain areas. Key districts of operation include Kailali, Kanchanpur, Dailekh, Dadeldhura, Bajura, Kalikot, Salyan, Achham, Doti, Bajhang, and Baitadi, among many others.

MLBSL's strategic expansion plan aims to extend services throughout the country, covering maximum numbers of local municipalities to ensure low-income people can access financial services at their doorsteps.

Question 5

What services does Matribhumi Laghubitta Bittiya Sanstha Limited offer?

Accepted Answer

MLBSL provides a comprehensive range of microfinance products and services designed specifically for low-income populations:

Loan Products:
• Saral Karja (group-based loan without collateral for small-scale entrepreneurship)
• Laghuuddhyam Karja (collateral-based loans for individual or group projects)
• Housing loans for low-cost housing construction and maintenance
• Education loans for technical and vocational training
• Seasonal loans for agricultural activities
• Micro-enterprise loans for business development

Savings Products:
• Samuha Bachat (compulsory group savings with 7.5% interest)
• Pension Bachat (15-year pension savings scheme with doubling benefits)
• Remittance Bachat (savings for members receiving remittances from abroad)
• Bihani Baal Bachat (children's savings accounts)
• Project and industrial savings accounts

Additional Services:
• Remittance services for receiving money transfers
• Micro-insurance products
• Financial literacy training programs
• Skill development and entrepreneurship training
• Mobile banking and digital financial services

Client Protection Programs:
• Maternity support for women members
• Financial support during natural calamities
• Funeral expense assistance
• Medical expense support
• Scholarships for members' children

Question 6

What makes Matribhumi Laghubitta Bittiya Sanstha Limited unique?

Accepted Answer

MLBSL distinguishes itself through several key characteristics:

Successful Merger History: The institution represents one of Nepal's most successful microfinance consolidation stories, bringing together seven institutions efficiently within a short timeframe. This demonstrates strong management capabilities and strategic vision.

Technology Focus: MLBSL emphasizes technology-based financial services, incorporating modern digital banking solutions to reach remote communities. The institution leverages financial technology to enhance service delivery while maintaining the personal touch of microfinance.

Women-Centric Approach: The institution particularly targets women in low-income communities, recognizing their role in household economic management and community development. The group-based lending model empowers women through collective financial activities.

Holistic Development: Beyond financial services, MLBSL provides "credit plus" activities including skills training, financial literacy programs, and client protection services. This comprehensive approach addresses not just financial needs but overall socio-economic development.

Extensive Rural Reach: With 236 branches across 60 districts, MLBSL maintains one of the most extensive microfinance networks in Nepal, ensuring accessibility even in remote hill and mountain communities.

Question 7

What type of financial institution is Matribhumi Laghubitta Bittiya Sanstha Limited?

Accepted Answer

Matribhumi Laghubitta Bittiya Sanstha Limited is a Class 'D' Microfinance Institution, which is the specific designation used by Nepal Rastra Bank for microfinance financial institutions in Nepal.

In Nepal's banking regulatory framework, financial institutions are categorized into four classes: Class 'A' (Commercial Banks), Class 'B' (Development Banks), Class 'C' (Finance Companies), and Class 'D' (Microfinance Institutions). Class D institutions are specifically designed to provide financial services to underserved populations, particularly in rural areas.

As a national-level Class D institution, MLBSL is authorized to operate throughout Nepal and must maintain minimum paid-up capital of NPR 100 million and a Capital Adequacy Ratio (CAR) of at least 15% of risk-weighted assets. The institution operates under the Bank and Financial Institutions Act, 2073 (2016) and is regulated by Nepal Rastra Bank.

MLBSL's structure as a public limited company under the Companies Act allows it to raise capital from shareholders while maintaining its social mission of financial inclusion and poverty reduction through sustainable microfinance services.

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