(1) The institution shall set up a separate risk fund in addition to the fund mentioned in section 24 for the purpose of covering the possible losses caused by disbursing small loans, and shall deposit in that fund the amount of the remaining total loan amount remaining in the investment until the last day of each financial year. (2) According to sub-section (1), the organization can invest the amount accumulated in the fund in the securities of the Government of Nepal or a bank or in the periodic deposit of a commercial bank or financial institution. If the micro-loan needs to be waived, the institution will have to take the bank's approval.