(A partnership between UKaid Sakchyam and Rural Microfinance Development Centre)


The UKaid Sakchyam Access to Finance Programme (Sakchyam) is helping the RMDC Laghubitta Bittiya Sanstha Ltd.  (RMDC) to increase financial access in Sakchyam’s working districts. RMDC is an apex institution, mandated to provide wholesale loan and build institutional capacity of microfinance institutions (MFIs) in Nepal. RMDC works with leading MFIs including Microfinance Development Banks (MFDBs), Financial Intermediary NGOs (FINGOs), and Cooperatives, and is one of the prominent wholesale lending organizations in the country. Its partners’ outreach constitutes nearly 70% of the entire microfinance industry. Because of limited presence of RMDC, however, small MFIs located in rural areas had difficulty in accessing loan from RMDC making it difficult to meet the loan demand of their clients.

Sakchyam Intervention

This 3-year project is expected to establish a long-term partnership between RMDC and local MFIs to allow these MFIs to receive wholesale credit to fulfil the credit needs of low-income households. As a result, clients of these MFIs, many living in rural and semi-urban areas, will be able to use the financial resources to generate income-generating activities to improve their economic status. Sakchyam’s support will enable RMDC to open two separate branch offices in strategic locations with additional human resources so that it can reach more remote districts and small MFIs. Sakchyam support will also help RMDC to provide institutional capacity-building support to over 90 different MFIs around the country. RMDC will on-lend NPR 1 billion to partner MFIs, which in turn, will be channelled to their members/clients to establish income-generating activities.

RMDC will develop the capacity of these partner MFIs and their members/clients by offering financial literacy training, sector-specific Small and Medium Enterprise (SME) promotion training, and organizational management support including new product design and digitalising manual transactions.

A new capacity-building component has been included in the partnership for conducting capacity strengthening of RMDC with the involvement of International Financial Corporation (IFC). IFC will provide technical support to build the institutional capacity of RMDC on three major aspects: Strategy and Business Model, Strengthen Credit & Risk Management Framework and Enhancing Partner Training Effectiveness and Staff Capacity Building.


Through the newly established regional branches, RMDC provides wholesale loans to its partner financial institutions working in those geographic areas. They aim to forge partnerships with around 90 MFIs (60 new MFIs and 30 existing RMDC partners) to provide access to finance to an additional 42,000 members/clients in Sakchyam’s intervention districts. Through this they plan to on-lend NPR 1 billion wholesale loans to partner MFIs.

Similarly, through the project, they are providing financial literacy to potential and existing clients of partner MFIs. RMDC also provides capacity building training to partner MFIs and facilitates loan among partner MFIs to better cater to the needs of microfinance clients in rural areas.


As of March 2020, RMDC has:

  • Established new branches- in Kohalpur and Itahari
  • On-boarded 47 new MFIs/Coops in Sakchyam priority districts.
  • Reached more than 28,000 new clients
  • Provided more than NPR 1.96 billion in wholesale loans or Institutional loans to Cooperatives and SACCOs
  • Provided more than NPR 1.52 billion in wholesale loans or Institutional loans to Cooperatives and MFDBs