Nirdhan Utthan Laghubitta Bittiya Sanstha

Nirdhan Utthan is a pioneer microfinance institution involved in extending financial services to low income group in Nepal. 

Housing Loan

NULBSL uses a very specific targeting strategy to ensure that all first-time clients are very poor. As one of the targeting criteria is the absence of cement walls or ceiling in the client’s house, there is a strong demand for various types of housing loans. To access the housing loans the clients must have maintained strong credit discipline in the previous years, have improved economic condition from previous loans, and be willing to contribute at least 20 percent equity (10 percent cash and 10 percent in-kind). NULBSL charges an interest rate of 15 percent on a declining balance with monthly repayments.

  • House Construction Loan: available to clients who meet the above requirements and have taken general loan. Members generally construct a new house on their current property with this loan.
  • House Repair Loan: available to clients who meet the above requirements and have completed the first loan cycle of the general loan. This loan is used to make capital improvements like replacing a roof on a current house.
  • Homestead Purchase Loan: available to clients who meet the above requirements and have borrowed general loan. This loan allows members to purchase a small amount of land.

The loan size, loan term and other conditions for housing loans are as follows:

Loan TypeMaximum Loan Size Rs.Loan TermAnnual Interest RateRepayment Frequency
House constructionUpto 7,00,0005 Years15% per annumMonthly
House repairUpto 40,0002 Years15% per annumMonthly
Homestead purchaseUPto 3,00,0005 Years15% per annumMonthly
Toilet/LaterineUpto 30,0002 Years15% per annumMonthly

NULBSL at a Glance, As of Feb 12, 2024

Total Loan Disbursed (NPR) 228.56 Billion
Number of Branch Office 185
Loan Outstanding (NPR) 25.81Billion
Number of Centers 22,715
Number of Active Clients 400,416
Number of Regional Office 10
Saving & Deposit (NPR) 19.45 Billion
Total Staff 1,134
Working Districts 77
Local Bodies Outreach 552
Number of Loan Clients 196,265
Currency Conversion USD 1=NPR 132.86
Number of Female Staffs 500