Microfinance in Nepal has expanded remarkably over the last decade and a half. As of mid-2009, over 1.7 million Nepalis were served by microfinance institutions, representing about 6.3% of the total population and 20% of those below the poverty line. However, geographic coverage remains uneven, with the Terai region better served than remote mountainous areas. While outreach has grown substantially, reaching only 20% of those in poverty indicates there is still significant unmet demand. Efforts are needed to increase the speed and inclusiveness of expansion, especially among disadvantaged social groups.

1. The State of Microfinance for Inclusive Economic Growth __________ Outreach and Growth Ganesh Bahadur Thapa, Chairperson, CMF Nepal

10. Geographic Coverage of Microfinance

11. Geographical outreach and need

13. 51% 12%

14. 21 %