“Meter byaj”, a fraudulent lending practice, is a significant financial hardship for many Nepali families, particularly in rural areas lacking access to formal banking. Moneylenders often prey on vulnerable borrowers, charging such extreme interest rates that debts rise as fast as a spinning taxi meter.
Informal lenders have always existed, but the scale of their influence recently is worrying. They can charge as high as 36 per cen to 120 per cent per annum, which is much higher than the legal maximum of 10 per cent per annum for personal loans.
