November 21, 2017

District Overview

Sunsari is a district that lies in Province 1 of Nepal. The district with Inaruwa as its headquarter is located in the Terai plain of Eastern development region. The total area covered by the district is 1,257 sq. km., which is further divided into 49 VDCs, three municipalities and six electoral constituencies. The total number of households being 162,407, the district has a total population of 753,244 (Male 362,551 and Female 390,693) and a population density of 607.39 per sq. km.[1]

Economic and Financial Landscape

The major economic activities performed by the locals of this district are agriculture, industry and service. However, only 19.47% of the households report to have agriculture as their major source of income[2]. The main reason behind this is the growing popularity of migration and overseas employment.

The district is served by 84 different branches of ‘A’ Class Commercial Banks, 21 different branches of ‘B’ Class Development Banks, 11 different branches of ‘C’ Class Finance Companies. The population served per branch is 7,437 against the national average of 8,960[3]. This indicates the need to further expand the outreach of financial services and facilities to the unbanked population of the area.

GESI Issues

The highest population of Sunsari is that of Tharu (11.98%), followed by Muslim (11.55%). The population of Sunsari further consists of 7.99% of Brahmin, 9.36% Chhetris, 2.20% Kami, 2% Magar followed by others, based on caste or ethnicity[4]. Caste based discriminations is the major problems of the district. Seasonal migration to India for employment is also an observed problem. A key focus of Sakchyam is to increase the access to financial services and facilities for the rural poor of the district, particularly for women and other DAGs. Sakchyam Access to Finance programme may also focus on climate and GESI related concerns such as solar technology, biogas and rice husk Gasifier, wood, bio-charcoal, bio-briquette, etc.

Sakchyam’s Ongoing Interventions

Value Chain Financing Innovations

  • Targeting farmers, Tractor Loan Product has been launched in the district via partnership with Laxmi Bank. They have also introduced Sakchyam Udhyami Karja, Micro Mortgage, E-Rickshaw and Livestock Loan in the district.

Delivery Channel Innovations

  • The programme has been able to reach the unbanked population of the district through introduction of Tablet/Mobile Banking via partnership with Sahara SACCOS.

Outreach Expansion

  • To increase financial access for rural poor, four branches of Sahara SACCOS and one branch of RMDC have been established in the district.

Financial Literacy Initiatives

  • Sahara SACCOS is conducting financial literacy campaigns through IVR, PGT, Centre Meeting Modules, FM Radio and videos.
  • Nerude is using flip chart, videos to promote financial literacy to their clients and potential clients.

Product Development

  • Sahara SACCOS has launched Commercial Agriculture Loan and Renewable Energy loan in the district.

Other Support

  • The programme is supporting Laxmi Bank, Machhapuchhre Bank and Sanima Bank to deploy Dedicated ARMs to increase financial services to the rural poor.
  • Laxmi Bank has introduced Sakchyam Udhyami Karja, Micro Mortgage, E-Rickshaw, Tractor,  and Livestock Loan
[1] National Population Census (2011) [2] National Sample Census of Agriculture (2011-2012) [3] Nepal Rastra Bank (July 2018)[4] National Population Census (2011)

Related posts

featured partners case studies

Field staff of a Microfinance Institution (MFI) spend 40 to 60 mins in conducting one centre meeting. Most of the...(more...)
The Bageshwari branch of Vijaya Laghubitta Bittiya Sanstha (VLBS) has been listed as one of the fastest profit-earning branches in...(more...)