What Is Laghubitta and What Role Does It Play in the Banking Sector Of Nepal?

Updated On : Feb 2023


The microfinance space has seen tremendous growth in Nepal in recent years, and Laghubittas, or microfinance institutions, have emerged as the most popular entities across the country. Laghubitta is a specialized financial institution that attends to the banking needs of the rural and semi-urban populations of Nepal. It offers multiple financial services and products to the population, which doesn't have access to conventional banking services.

Laghubittas have been popular among people as they provide microloans and other financial services to the country's inhabitants. These financial institutions, which are growing at a rapid pace, have become an essential part of Nepal's economic development and have played an important role in reducing poverty to a great extent. With their support, many small and medium-sized businesses have begun to expand their reach, which has led to increased employment opportunities.

Laghubittas have also boosted the purchase of land for agricultural purposes, thereby promoting the development of Nepal's rural areas. By providing access to microcredit and financial services, laghubittas have made a positive impact on Nepal's economy. Here, we explain how Laghubitta works in Nepal and what services they provide. We have also attempted to shed light on the benefits they provide for your clear understanding. Here, we delve into the subject of how the Laghubitta banking system works and how it is helping shape the future of banking in Nepal.

Laghubittas in Nepal provide a range of banking services and carry loads of advantages, which are explained in brief here:

Banking services provided by Laghubitta:

  • Deposit Accounts: Laghubitta offers various deposit accounts to its customers, like regular savings accounts, fixed deposit accounts, and recurring deposit accounts.
  • Loan Products: To meet the financial needs of its customers, Laghubitta offers various loan products, such as mortgage loans, education loans, and consumer loans.
  • Money transfer and payment services:Laghubitta also offers a variety of money transfer and payment services, including e-banking and mobile banking.

Advantages of Laghubitta:

  • Convenience: Laghubitta's banking services are easily accessible to people in rural and semi-urban areas.
  • Affordability: They are affordable and accessible to a wider section of the population.
  • Security: Laghubitta provides a high level of security to ensure the safety of customers' funds.
  • Ease of use: The banking services are easy to use and suitable for those with limited banking knowledge.


Laghubitta Banking Services provides a convenient and secure platform for people living in rural and semi-urban areas to access financial services and products. The launch of Laghubitta banking services in Nepal has helped provide innovative financial solutions to those without access to formal banking services.

These services are reliable, secure, and cost-effective and provide convenient banking solutions to rural Nepal. Offering a wide range of products and services, Laghubitta banking has revolutionized the banking sector in Nepal and made it more inclusive.

Nelito Systems’ FinCraftTM Integrated Lending Management System enables the digital transformation of microfinance organizations. Our FinCraftTM solutions have been successfully implemented in Laxmi Laghubitta Bittiya Sanstha (LxLB), a national-level microfinance institution in Nepal, which takes their operations to the next level of agility and helps them reach more customers and offer them better service.

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