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Lending Methodology

Five models designed to serve diverse client needs

Lending Methodology

Mero Microfinance employs five distinct lending models to deliver financial services tailored to different communities and client profiles across Nepal.

Model 1

Grameen Bank Model

Group-based lending model where 5-member groups take joint liability for loans. Centres of multiple groups meet weekly to collect repayments, build savings, and receive financial education. Suitable for rural women without collateral.

Model 2

Community Banking Model

Community-managed savings and credit groups (up to 30 members) where members take turns managing a fund. Encourages local ownership of financial services and peer accountability.

Model 3

Entrepreneurs Group Model

Lending to small and medium enterprise owners who are grouped together to access credit. Combines peer support with individual business assessment.

Model 4

Individual Lending Model

Direct loans to individuals with sufficient collateral or credit history. Used for larger loan amounts and established clients who do not require group guarantees.

Model 5

Agent Banking Model

Delivery of financial services through local agents (small retailers, community volunteers) in areas where branch infrastructure is limited. Extends financial access to remote communities.

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