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(A partnership between UKaid Sakchyam and Mahila Samudayik Laghubitta Bittiya Sanstha Ltd)

Background

Several Microfinance Institutions (MFIs) have started their operation in recent years in Nepal. The rise in number has helped increase financial access. More than 4 million members are affiliated with MFIs and they are the only financial institution in remote areas providing financial services.

Challenges

Grameen model followed by Nepalese microfinance industry requires high level of engagement with members. Besides financial services, members also expect support in other non-financial services such as linkage to the market and business support services to start and expand their income generating activities. Most of the MFIs non-financial service support is supply driven and not aligned with need of members.

Sakchyam’s Interventions

UKaid Sakchyam Access to Finance Programme has supported Mahila Samudayik Microfinance Financial (MSMF) Institution, previously Nepal Women Community Service Centre (NWCSC), to expand Enterprise Development Service (EDS) in its branches located in Dang, Rolpa, Rukum, Salyan and Pyuthan. Through this partnership, NWCSC will also introduce Tablets to digitize its operation and link the EDS operations. MSMF will also be working with other agencies to create market linkages. To align their EDS beneficiaries with improved financial services, relevant financial literacy campaigns will also be organized. MSMF will take technical support from Berendina Microfinance, which has pioneered EDS activities to MFI clients in Sri Lanka.

Likely Impact

Sakchyam’s support to MSMF in its various initiatives should see improved skills of new and existing entrepreneurs along with financial services to start and up-scale their business. MSMF’s understanding of the needs of beneficiaries in the region coupled with the EDS and Tablet services will help boost economic activity and help launch multiple small enterprises as a result of the financial literacy and skill training. Through this project, MSMF will offer micro-enterprise loan along with other auxiliary support to 6,000 beneficiaries. MSMF has also committed to providing skill trainings to some 3,300 beneficiaries. In addition, MSMF will launch tablet banking in all 22 branches. Use of tablets is also expected to help track the production of EDS clients.

Impact

As of June 2019, MSMF has,

  • deployed 80 tablets in 22 branches
  • issued 8,037 coupons and conducted 662 training (with more than 8500+ participants ) as a part of EDS activities