Microfinance Institutions to reimburse Rs 1.60 arba worth illegally raised service charge to respective borrowers; not to levy more than 1.50% service charge

Microfinance institutions have decided to reimburse Rs 1.60 arba worth of illegally raised service charges to the respective customers within a week.

Likewise, microfinance will not be allowed to charge more than 1.5% service charge per year while these institutions will make sure that the borrowers don’t receive loans from more than one institution, as per the media statement.

The agreement was reached amid the joint effort between the finance ministry and the minister Mr. Bishnu Paudel, the microfinance bankers association, and microfinance finance operators, as per the media statement.