Nepalese banks are currently experiencing unprecedented levels of liquidity, holding record amounts of cash. However, this surplus is not reaching the Nepali people who need it most, particularly vulnerable borrowers. Strict collateral requirements and complicated paperwork processes are creating significant barriers to access for individuals and small businesses. Consequently, many are being forced to turn to predatory lenders who offer loans with exorbitant interest rates and unfavorable terms. This disparity highlights a critical issue of financial exclusion within Nepal’s banking system. Experts suggest reforms are needed to simplify lending procedures and address collateral demands to ensure broader access to credit. The situation underscores a fundamental disconnect between the financial health of banks and the economic realities faced by ordinary Nepalis.