This study presents a review of credit-based micro-enterprises development programmes in Nepal and discusses the important issues related to credit, micro-enterprises and development. It provides a comparative perspective on the coverage, methodologies, implementation process and sustainability aspects of seven important micro-credit programmes in Nepal, and it also attempts to identify the impact and factors of their relative performance and effectiveness, particularly their contribution to the promotion of micro-enterprises in mountain areas. The study concludes that, even through the total coverage of all entrepreneurs, they have nevertheless led to improvement in the access of the rural people, particularly women, to credit. With the focus being mainly on self-help and poverty reduction. However, the programmes have not been very effective in the promotion of the development of micro-enterprises. The study finally makes some suggestions and recommendations on ways to make the credit programmes more effective in promotion of micro-enterprises, particularly in mountain areas.