Introduction
Microfinance is a powerful tool for reducing poverty and expanding economic opportunities by providing access to essential financial services such as credit, savings, training, insurance, and health campaigns to low-income individuals and communities.
Aarambha Chautari Laghubitta Bittiya Sanstha Limited (ACLBSL) is one of the leading national-level microfinance institutions in Nepal, currently operating in 57 districts across the country. In line with the Merger Policy of Nepal Rastra Bank (NRB), ACLBSL was established through the merger of Chautari Laghubitta Bittiya Sanstha Limited and Aarambha Laghubitta Bittiya Sanstha Limited.
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Chautari Laghubitta Bittiya Sanstha Limited was established on March 23, 2015, under the Company Registrar Act 2063, and was licensed as a “D” Class Financial Institution by NRB on November 25, 2015, operating across 16 districts.
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Aarambha Laghubitta Bittiya Sanstha Limited was established earlier on April 19, 2014, under the same act and obtained its “D” Class license from NRB on May 10, 2015, also serving 16 districts.
Following the merger, ACLBSL has expanded its reach and strengthened its capacity to serve the unbanked and underprivileged segments of society.
ACLBSL provides micro-loans ranging from NPR 5,000 to NPR 700,000 (approximately USD 50–7,000). Collateral-free loans are primarily provided to women for initiating or expanding small-scale businesses, while larger, collateral-backed loans are available for micro-enterprise development. Borrowers typically engage in income-generating activities such as livestock rearing, small trade, or service-based micro-businesses that enhance their household income and living standards.
ACLBSL adopts the Group Lending Model, where groups of poor women mutually guarantee each other’s loans. Prior to receiving loans, members undergo financial literacy training and must successfully complete an assessment. Monthly center meetings are conducted with strict financial discipline, resulting in high repayment rates on collateral-free loans. The institution also provides micro-insurance and other financial services that support poverty reduction and improve financial resilience.
ACLBSL firmly believes that access to basic financial services can significantly enhance economic opportunities and improve the quality of life for poor and marginalized communities. Its mission is to expand outreach to underserved areas through a strong, community-based distribution network that ensures easy access to a comprehensive range of microfinance products and services.
Operating under the Joint Liability Group (JLG) model, ACLBSL promotes inclusiveness and equality, offering services without bias of caste, religion, or ethnicity. Loans are extended to individual women within five-member groups, where all members serve as mutual guarantors.
The institution follows a doorstep service delivery approach, ensuring convenience and accessibility for its members in both rural and urban areas. This system minimizes travel time and cost for borrowers, while enabling ACLBSL staff to provide timely loan disbursement, collection, and customer support services.
Loan sizes are determined based on each member’s cash flow and repayment capacity. The institution also offers a daily collection facility, designed for clients with irregular cash flows and limited access to formal savings mechanisms. New members are introduced gradually to borrowing and saving habits through smaller initial loans and structured repayment systems.
From village and member selection to training, loan disbursement, and installment collection, ACLBSL ensures that every process follows a transparent and well-defined operational framework, reflecting its commitment to good governance, accountability, and sustainable financial inclusion.