Interest Rate changed of Chhimek Microfinance

Chhimek Microfinance is a leading microfinance institution in Nepal. Established in 1999, it has been providing financial services to the rural and urban poor, especially women. The organization’s main objective is to promote financial inclusion and poverty alleviation by providing microfinance services to the underserved and unserved populations in Nepal. Recently, Chhimek Microfinance announced a change in its saving interest rate, changed it to 9%. This change is significant for both the institution and its clients.

Chhimek Microfinance provides mainly 4 types of saving accounts :

Saving accounts name Interest rate Minimum deposit amount

  1. Child future saving account (बाल भविष्य बचत खाता) 9% 500/-
  2. Staff saving account (कर्मचारी बचत खाता) 9% 1000/-
  3. Institutional special saving account 8% 10,000,00/-
  4. Fix Deposit Saving account:

.3 to 6 months 9.1 to 10.1 5000/-

7 months to 2 years 9.5 to 10.5 5000/-

Moreover, increasing the saving interest rate can also benefit Chhimek Microfinance’s operations. Microfinance institutions rely on deposits from their clients to provide loans and other financial services. By offering a higher saving interest rate, Chhimek Microfinance can attract more deposits, which can increase its liquidity and allow it to provide more loans to its clients. This can also improve its financial performance and sustainability, which can attract more investors and funding partners.

In conclusion, Chhimek Microfinance’s decision to increase its saving interest rate to 9% is a strategic move that can benefit both the organization and its clients. By remaining competitive in the market and providing better returns to its clients, Chhimek Microfinance can increase its market share and promote financial inclusion. However, there are also potential challenges that Chhimek Microfinance may face with this change, such as the impact on profitability and inflation. To overcome these challenges, Chhimek Microfinance may need to adjust its strategies and work closely with the government and other stakeholders. Overall, the increased saving interest rate is a positive development that can contribute to the economic growth and development of Nepal.

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