Rural Microfinance Development Centre (RMDC)

January 16, 2018



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’s Interventions

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 trainings, and organizational management support including new product design and digitalising manual transactions.


Through the new established regional branches, RMDC is providing 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 around 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, RMDC is providing financial literacy to potential and existing clients of partner MFIs. RMDC is also providing capacity building training of partner MFIs and facilitating loans among partner MFIs to better cater to the needs of microfinance clients in rural areas.

As of September 2018, RMDC has,

  • Established 2 new branches, first time outside of Kathmandu
  • On-boarded 41 new MFIs/Coops and working with 30 existing MFIs/Coops in Sakchyam priority districts.
  • Reached more than 59,000 new MF clients
  • Disbursed more than GBP 3 million in loans

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