Dedicated MSME Financing Unit in Financial Services Providers & Savings-Led Products and Services

The SME Finance Component of the UKaid-Sakchyam Access to Finance (Sakchyam) invites interested and qualified commercial banks, development banks, finance companies and their consortium partners to submit a Full Application for designing, developing, and launching innovative products and services in partnership with Sakchyam through technical assistance, knowledge-sharing, and cost-sharing through the Sakchyam Challenge Fund (S-CF).

Today, roughly 40% of Nepal’s population is banked through formal institutions (Class A, B, C, and D). Another 20% receive financial products from non-bank formal financial institutions. However, these institutions and their clients are heavily concentrated in Kathmandu, the Terai region and accessible hills. Moreover, their products are limited, with many Financial Service Providers (FSPs) offering similar credit and savings products and very few providing micro-insurance, remittance, and money transfer services for the poor. Further, very few of these financial institutions offer products and services which are tailored to the needs of MSMEs. Most of their products and services are still targeted at corporate houses and urban upper middle class individual customers. Majority of the FSPs are yet to approach MSME sector with structured and focused strategies.

Similarly, while savings has been found to be instrumental in helping people build and protect their assets, savings remains limited and is done largely through informal mechanisms.

Applicants are encouraged to propose new concepts that expand the access to finance frontier for the MSME and rural poor and build upon successes and experiences in the region and internationally. We encourage applicants to think about serving the financial needs of MSME using innovative approaches and tools, such as a dedicated MSME unit, use of alternate credit scoring models, value chain financing products, alternate delivery mechanism, savings products, etc.

Applicants are encouraged to propose new concepts that expand the access to finance frontier and build upon successes and experiences in the region and internationally.

The Attached Full Application Pack gives:

Terms of Reference (PDF format)
Full Application Information Pack (PDF format)
Full Application Format (Word format)
Section 9&10 Financial Information (Excel format)

Click Here to Download the Full Application Information Pack