Nirdhan Utthan Bank Limited (NUBL)
Approved to post Kiva loans from: Nepal
Kiva conducts regular, ongoing monitoring of all Lending Partners, but only posts status updates here in response to relevant, major changes at the partner.
Status Update - December 19, 2014
Kiva and NUBL have agreed to end their partnership after more than 2 years and more than $20,000 in loans raised. This Lending Partner is still in the process of repaying its outstanding balance to Kiva, but has committed to repaying lenders in full. NUBL has encountered unexpected delays in the repayment process waiting for approval of a foreign currency transfer from the Central Bank of Nepal. We thank lenders for their patience while NUBL works to overcome this barrier, and we will update this page when we learn of any progress or continued delays.
Partner Description:
Nirdhan Utthan Bank Ltd. (NUBL) is a regulated microfinance institution licensed by the central bank of Nepal as a National Level class “D” microfinance development bank. As a public limited company, 30% of the equity is held by the general public, and 70% is held by promoters. These promoters include are Nirdhan NGO, Nabil Bank Ltd., Himalayan Bank Ltd., Everest Bank Ltd., Grameen Trust Bangladesh and private individuals.
NUBL was incorporated in October 1998 and Nirdhan NGO transferred its microfinance activities, including overall infrastructure, staff, loan portfolio and most of its assets to NUBL in July 1999. Today, it has paid-up capital of more than 174 million Nepalese rupees, and serves more than 140,000 clients through five regional headquarters and 92 branch offices in 37 districts.
NUBL’s mission is to extend sustainable financial and social services to the poor in underserved areas of Nepal. To achieve this objective, it has set the following goals:
1) Adopt a proven service delivery mechanism to reach the maximum number of poor households that have the potential for financial viability.
2) Develop a well-managed institution with ethical staff and practices.
3) Enhance women’s “self respect” through social awareness, savings services, and a regular, well-designed repayment schedule.
NUBL loans to individuals on the basis of group solidarity without requiring collateral. For micro-enterprise loans, the institution requires collateral. NUBL also provides micro-insurance and remittance services.
The bank has created a solid strategic alliances with various international institutions like the World Bank, Plan International, MIX Market, Save the Children, Mercy Corps, Grameen Trust, the United Nations Development Programme, and more. On a national level, NUBL works with the Nepal Microfinance Development Bankers Association and the Centre for Microfinance -- networks that have allowed NUBL to recruit staff and clients.
NUBL has an eight-member board. Currently, there are six members: Executive Chair Dr. Harihar Dev Pant, Mr. P KPradhan from EBL, Professor Fatta Bahadur KC, and Mr. Top Bahadur, Mr. Krishna Gopal Manandhar from Nabil Bank Ltd., and Mr.Balkrishna Subedi as
independent director. The board sets strategies and long-term goals. Day-to-day operations are headed by General Manager Mr. Prakash Raj Sharma. NUBL currently employs about 480 workers.
NUBL’s Mission:
To extend sustainable financial and social services to the poor in underserved areas of Nepal.
Status Update - February 4, 2015
NUBL has repaid its outstanding balance to Kiva in full, and these funds have been distributed to lenders. We thank NUBL for the years of collaboration and wish them success in their future endeavors.
Status Update - December 19, 2014
Kiva and NUBL have agreed to end their partnership after more than 2 years and more than $20,000 in loans raised. This Lending Partner is still in the process of repaying its outstanding balance to Kiva, but has committed to repaying lenders in full. NUBL has encountered unexpected delays in the repayment process waiting for approval of a foreign currency transfer from the Central Bank of Nepal. We thank lenders for their patience while NUBL works to overcome this barrier, and we will update this page when we learn of any progress or continued delays.
Partner Description:
Nirdhan Utthan Bank Ltd. (NUBL) is a regulated microfinance institution licensed by the central bank of Nepal as a National Level class “D” microfinance development bank. As a public limited company, 30% of the equity is held by the general public, and 70% is held by promoters. These promoters include are Nirdhan NGO, Nabil Bank Ltd., Himalayan Bank Ltd., Everest Bank Ltd., Grameen Trust Bangladesh and private individuals.
NUBL was incorporated in October 1998 and Nirdhan NGO transferred its microfinance activities, including overall infrastructure, staff, loan portfolio and most of its assets to NUBL in July 1999. Today, it has paid-up capital of more than 174 million Nepalese rupees, and serves more than 140,000 clients through five regional headquarters and 92 branch offices in 37 districts.
NUBL’s mission is to extend sustainable financial and social services to the poor in underserved areas of Nepal. To achieve this objective, it has set the following goals:
1) Adopt a proven service delivery mechanism to reach the maximum number of poor households that have the potential for financial viability.
2) Develop a well-managed institution with ethical staff and practices.
3) Enhance women’s “self respect” through social awareness, savings services, and a regular, well-designed repayment schedule.
NUBL loans to individuals on the basis of group solidarity without requiring collateral. For micro-enterprise loans, the institution requires collateral. NUBL also provides micro-insurance and remittance services.
The bank has created a solid strategic alliances with various international institutions like the World Bank, Plan International, MIX Market, Save the Children, Mercy Corps, Grameen Trust, the United Nations Development Programme, and more. On a national level, NUBL works with the Nepal Microfinance Development Bankers Association and the Centre for Microfinance -- networks that have allowed NUBL to recruit staff and clients.
NUBL has an eight-member board. Currently, there are six members: Executive Chair Dr. Harihar Dev Pant, Mr. P KPradhan from EBL, Professor Fatta Bahadur KC, and Mr. Top Bahadur, Mr. Krishna Gopal Manandhar from Nabil Bank Ltd., and Mr.Balkrishna Subedi as
independent director. The board sets strategies and long-term goals. Day-to-day operations are headed by General Manager Mr. Prakash Raj Sharma. NUBL currently employs about 480 workers.
NUBL’s Mission:
To extend sustainable financial and social services to the poor in underserved areas of Nepal.
Repayment Performance on Kiva
| This Lending Partner | All Kiva Partners | ||
| Start Date On Kiva | Aug 3, 2012 | Oct 12, 2005 | |
|---|---|---|---|
| Total Loans | $21,775 | $2,047,627,740 | |
| Amount of raised Inactive loans | $0 | $324,550 | |
| Number of raised Inactive loans | 0 | 187 | |
| Amount of Paying Back Loans | $0 | $154,885,235 | |
| Number of Paying Back Loans | 0 | 186,826 | |
| Amount of Ended Loans | $21,775 | $1,851,531,775 | |
| Number of Ended Loans | 40 | 2,491,990 | |
| Delinquency Rate | 0.00% | 12.00% | |
| Amount in Arrears | $0 | $11,217,121 | |
| Outstanding Portfolio | $0 | $93,462,698 | |
| Number of Loans Delinquent | 0 | 54,050 | |
| Default Rate | 0.00% | 1.82% | |
| Amount of Ended Loans Defaulted | $0 | $33,752,545 | |
| Number of Ended Loans Defaulted | 0 | 89,005 | |
| Currency Exchange Loss Rate | 1.42% | 0.47% | |
| Amount of Currency Exchange Loss | $309 | $12,729,635 | |
| Refund Rate | 0.00% | 0.53% | |
| Amount of Refunded Loans | $0 | $10,938,345 | |
| Number of Refunded Loans | 0 | 9,670 |
Loan Characteristics On Kiva
| This Lending Partner | All Kiva Partners | ||
| Loans to Women Borrowers | 100.00% | 78.48% | |
|---|---|---|---|
| Average Loan Size | $544 | $393 | |
| Average Individual Loan Size | $544 | $586 | |
| Average Group Loan Size | $0 | $1,910 | |
| Average number of borrowers per group | 0 | 8.3 | |
| Average GDP per capita (PPP) in local country | $2,400 | $5,593 | |
| Average Loan Size / GDP per capita (PPP) | 22.68% | 7.03% | |
| Average Time to Fund a Loan | 0.08 days | 9.12 days | |
| Average Dollars Raised Per Day Per Loan | $7,060.11 | $43.08 | |
| Average Loan Term | 15.16 months | 11.5 months |
Journaling Performance on Kiva
| This Lending Partner | All Kiva Partners | ||
| Total Journals | 0 | 1,221,287 | |
|---|---|---|---|
| Journaling Rate | 0.00% | 41.91% | |
| Average Number of Comments Per Journal | 0.00 | 0.02 | |
| Average Number of Recommendations Per Journal | 0.00 | 0.55 |
Borrowing Cost Comparison (based on 2012 data)
| This Lending Partner | Median for MFI's in Country | All Kiva Partners | ||
| Average Cost to Borrower | 18% PY | 22.00% PY | 26.44% PY | |
|---|---|---|---|---|
| Profitability (return on assets) | 0.5% | 2.8% | -1.32% | |
| Average Loan Size (% of per capita income) | N/A | 32.00% | 0.00% |
Country Fast Facts
- Country:
- Nepal
- Capital:
- Kathmandu
- Official Language:
- Nepali (official) 44.6%, Maithali 11.7%, Bhojpuri 6%, Tharu 5.8%, Tamang 5.1%, Newar 3.2%, Magar 3%, Bajjika 3%, Urdu 2.6%, Avadhi 1.9%, Limbu 1.3%, Gurung 1.2%, other 10.4%, unspecified 0.2%
- Population:
- 30,986,975
- Avg Annual Income:
- $2,400
- Labor Force:
- agriculture: 75%, industry: 7%, services: 18%
- Population Below Poverty Line:
- 25.20%
- Literacy Rate:
- 63.90%
- Infant Mortality Rate (per 1000):
- 40.43 deaths
- Life Expectancy:
- 67.55 years