Emergency Loan (family-guaranteed, up to NPR 25,000, 2-yr)

A Microfinance Group (collateral-free) Loan is a small loan provided by a licensed laghubitta bittiya sanstha (microfinance institution / MFI) to members of a self-formed group, secured not by land or property but by the joint guarantee of the group. It follows the Grameen-style methodology: poor and low-income people (overwhelmingly women) in the same locality form a small group, join a "center," complete Compulsory Group Training (CGT) and pass the Group Recognition Test (GRT), and only then become eligible to borrow for income-generating activities, agriculture, small business, or social/emergency needs. Members attend regular (usually weekly or monthly) center meetings, make compulsory savings, and repay in small installments; every member co-guarantees the others, so the whole group's good standing is required for fresh loans. Under current Nepal Rastra Bank (NRB) rules an MFI can lend up to Rs 5 lakh (Rs 500,000) collateral-free under group/individual guarantee, while collateral-backed micro loans go up to Rs 7 lakh.