UKaid Sakchyam Partners with Machhapuchchhre Bank Limited to Provide Simplified Microcredit Services to the Underserved Population

Machhapucchre Bank Limited (MBL) and UKaid Sakchyam Access to Finance Programme (Sakchyam) signed a partnership which will work towards providing simplified microcredit services to the unserved and underserved population of fourteen districts across Nepal. CEO of MBL, Mr. Niraj Kumar Shrestha and Team Leader of Sakchyam, Mr Baljit Vohra along with other representatives from MBL and Sakchyam were present to during this partnership signing ceremony which was held on 10th April.

The ‘Simplified Microcredit Services’ project aims to provide simplified micro credit service through 14 branches and to establish 20 Branchless Banking (BLB) touchpoints across seven districts, which include Banke, Dang, Kailali, Kanchanpur, Rupandehi and Surkhet in the Mid and Far Western Development Regions (MFWDR) and Dhading in the Central Development Region (CDR).

Highlighting the likely impact of the project, CEO MBL, Mr. Niraj Kumar Shrestha said, “Over the project period of 3 years, MBL aims to serve over 9,000 beneficiaries through our BLB touchpoints and dedicated Relationship Managers (RMs). Besides this, we are targeting to reach more than 13,000 beneficiaries through our financial literacy initiatives.”

Similarly, Mr. Baljit Vohra, Team Leader, Sakchyam said, “Due to the lack of formal financial institutions in remote rural areas, locals are forced to avail loans at extortionately high rates of interest from the local money lenders who often exploit the inability of the borrowers to repay the loans. Therefore, we are confident that this partnership will address such issues and serve the underserved population of the country so that they can lead a prosperous and dignified life.”  Stressing upon the importance of the RMs, Mr. Vohra further stated, “With the deployment of RMs dedicated to spearhead microcredit activities we are confident that loan-related targets we have set will be swiftly achieved.”

Machhapuchchhre Bank Limited registered in 1998 as the first regional commercial bank from the western region of Nepal. The Bank facilitates its customer needs by delivering the best of services in combination with the latest state of the art technologies and prudent international practices to over 450,000 customer at present.

Sakchyam is a UKaid-funded access to finance programme. It is being implemented by Louis Berger for DFID Nepal, in partnership with local and international institutions.