Microfinance in Nepal has expanded remarkably over the last decade and a half. As of mid-2009, over 1.7 million Nepalis were served by microfinance institutions, representing about 6.3% of the total population and 20% of those below the poverty line. However, geographic coverage remains uneven, with the Terai region better served than remote mountainous areas. While outreach has grown substantially, reaching only 20% of those in poverty indicates there is still significant unmet demand. Efforts are needed to increase the speed and inclusiveness of expansion, especially among disadvantaged social groups.