national cooperative bank nepal

Cooperative Credit Information

The increased unhealthy competition in cooperative sector usually lends to a number of unforeseen difficulties and increased problems of borrowers over-indebtedness, reduced loan repayment incentives and growing arrears of cooperative sector. Weakening performance of cooperative in a competitive market is due in part to the absence of information sharing in these markets because growing numbers of cooperatives increase the level of unequal information between lenders. Cooperative Credit Information Center play a crucial role toward improving credit market performance and acts as the information brokers that increase the transparency of credit markets. Motivated by cooperative survival amidst increasing competition, a wide array of lending cooperatives are becoming increasingly aware of the essential role that credit information center play toward the creation of an efficient financial system. Benefits of information sharing include an improved pool of borrowers, reduced default rates, lower interest rates and the increased access of the credit to the poor borrowers.