Mott MacDonald | Unlocking Opportunities for the Private Sector in Nepal Promoting greener and more inclusive growth
2.2.8
17
Providers of financial services
Respondents used multiple sources of finance rather than just one provider. About 96% of the respondents availed of financial services from the banks. The second top provider of financial services was non-bank financial institutions at 66% followed by moneylenders at 50%. Main users of moneylenders were respondents from the construction and manufacturing sectors. These were usually “ uick” loans to address temporary cash flow problems due to delayed payments, unexpected influx of orders or projects.
es a
s ess
s
N
s
a a
al se e
es e
l ple a s e s
ap al
e le
a
a
e s
s
Figure 9. Providers of financial services Venture capital was used mainly by respondents from the manufacturing and construction sectors. Microfinance institutions (MFIs), on the other hand, were utilized mainly by agribusinesses and a few from the manufacturing and tourism sectors. None of the respondents from the ICT and construction sectors were clients of MFIs. Although MFIs have higher coverage across the country, their loan size is too low for many of the small and medium enterprises.
February 2022
