Banks have excess cash, poor Nepalis can’t borrow it

Sehara Khatun borrowed 150,000 Nepalese rupees for household expenses, but a local moneylender inflated the loan document to 600,000 rupees. Seven years later, despite repaying over 200,000 rupees, she remains trapped in debt.

In a similar case, Shivashankar Mahato borrowed 2.7 million rupees to build a house. He was forced to transfer his land deeds as collateral and, after paying 2.5 million rupees six years later, discovered his land had been sold for 8.4 million rupees without his consent.

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I borrowed Rs150,000, but the paper showed a much higher amount. I have already paid more than the amount I received. Yet the debt has not cleared.

These individuals are among thousands ensnared in Nepal's persistent loan sharking crisis. Following years of protests, victims recently reached a nine-point agreement with the government. More than 24,000 borrowers have formally complained about moneylenders charging excessive interest and capitalizing on accumulated debt.

A high-level commission, formed in 2022, collected around 24,000 petitions across the country. Despite government negotiations and agreements, the problem endures, exposing a significant gap in Nepal's financial inclusion initiatives. While the formal banking sector has expanded, it has failed to offer accessible credit to many low-income and marginalized communities.

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I have already paid Rs2.5 million, yet they are demanding millions more. They sold my land without my consent. What am I supposed to do now?