Promoting Economic Opportunities through Migration Loan

Like many from her community, Basanta Kumari Raskoti’s husband Khum Bahadur Raskoti sought to go abroad for employment in the hopes of better providing for his family. The couple from Shantinagar, Dang had knocked on the doors of many local money lenders to loan them the money needed to process the application and associated costs to work abroad, which can be thousands of rupees. Unfortunately, going through this channel would have meant paying an exorbitant interest rate of 36%. “We were in no condition to pay this amount,” shares Basanta.

Luckily, she heard about the Migration Loan being introduced by the Nepal Woman Community Service Center (NWCSC) at its Shantinagar Branch. Soon after, she applied for the loan through one of the field center meetings run by NWCSC, and after submitting the required documents, she secured a loan worth NRs. 100,000 for her husband. With the loan secured to fund his endeavor, Khum Bahadur left to work in Malaysia thereafter. As he joined his new job, he started sending NRs. 35,000 per month back home. According to NWCSC’s rules, now Basanta pays certain monthly interest of 18% and repays a principal of NRs. 25,000 every three months

NWCSC’s Shantinagar Branch has also introduced the service of receiving remittances. Previously, one had to travel almost 11 KMs away from the village to receive remittances. With the service now in her village, Basanta has been able to save not only the travel expenses but also a considerable amount of time. This has also encouraged her to start saving, and she now has a saving worth NRs. 40,000 at NWCSC’s Shantinagar Branch.

With this regular income, there has been vast improvement in the living standard of the Raskoti family. Basanta has now been able to move out of the hut into a brick and tinned roof house. Further, she has also purchased a piece of land (0.25 acres) in her village and has started sending her children to a private school. With the increased earnings, Basanta has also replaced her traditional oven with a LPG oven which is healthier for her and her family.

NWCSC Shantinagar Branch was established with UKaid Sakchyam’s support. Through the partnership, innovative products such as the Migration Loan, and other savings and remittance products have been introduced through its various branches. So far, more than 200 clients have benefited from the Sakchyam Migration Loan Product.