Laxmi Sunrise Bank secures $25m loan to fund Nepal's MSMEs

Nearly a third of that money is expected to support women entrepreneurs.

Nepal’s Laxmi Sunrise Bank Limited (LSL) has secured a $25m credit facility from the British International Investment (BII) to loan out to small businesses in Nepal, with a portion allocated for women entrepreneurs.

Under the agreement, LSL will expand lending to micro, small, and medium enterprises (MSMEs), with 30% of the facility expected to support women-led MSMEs.

MSMEs contribute 22% of the country’s GDP and employ nearly 2 million people, according to data from the World Bank and Nepal Rastra Bank.

Despite this, only 16% of MSMEs have access to financing through formal channels, it said.

“MSMEs are the backbone of Nepal's economy, yet far too many - particularly women-led businesses - remain underserved by formal financial institutions. This $25 million facility empowers us to bridge that gap meaningfully,” said Sumed Bhattarai, officiating CEO, Laxmi Sunrise Bank.

Through this facility, at least 25% of BII’s new investments will be in countries defined as least developed by the United Nations, said Srini Nagarajan, managing director and head of Asia, BII.

“By partnering with Laxmi Sunrise Bank, we are backing a leading financial institution with the reach and ambition to support underserved businesses across Nepal, where getting access to financing is challenging but critical for the private sector to grow,” Nagarajan said.