Increased Capacity of Financial Cooperatives and Linkage with Wholesale Lending
Introduction: Nepal Federation of Savings and Credit Cooperative Unions Ltd. (NEFSCUN) is the member based national apex organization of Savings and Credit Cooperative Societies (SACCOS) and their District Unions (DUs). NEFSCUN is committed to the development, promotion and strengthening of its member organizations through supporting SACCOS and DUs in their aim to contribute for the upliftment of financial, social and cultural aspiration of individual members of respective community by following the international credit union principles. 2503 SACCOS/DUs are the member of NEFSCUN.
The Sakchyam, Access to Finance for the Poor Program (Sakchyam) is an initiative funded by UKaid as part of an agreement between the Governments of Nepal and the UK. It is implemented by Louis Berger for the Department for International Development (DFID Nepal) in partnership with local and international institutions. The 5-year program, is working with the public and private sectors to leverage access and facilitate financial sector development in Nepal for small and medium enterprises (SMEs) and for poor people with a focus on the Mid- and Far-Western Regions (MWDR and FWDR), and beyond.
NEFSCUN has completed the selection criteria of SAKSHYAM- challenge fund and will implement the program in 10 districts of mid and far western regions of Nepal for the period of three years till 2019.
Project Title: Increased Capacity of Financial Cooperatives and Linkage with Wholesale Lending
Objectives:The overall objective of the project is to Provide capacity building training and education to selected financial cooperatives to cover financially underserved people from the target areas, establish extended support centre of NEFSCUN in two hub locations to provide technical support and linkage of wholesale lending, enable communities and financial cooperatives to use latest technologies on financial access, categories financial cooperatives into three levels based on their capacities to make them sustainable financial institutions.
- Expected Result:
ER1: Increased income of rural people as a result of savings and credit facilities
ER2: Reduced interest cost of borrowing to invest into productive sectors
ER3: Increased product diversification to cover all the community people in the financial mainstreaming.
ER4: Increased capacity of saving cooperatives in their management, governance and financial viability.
- Project Districts:
- Mid-Western: Rolpa, Dang, Pyuthan, Rukum, Salyan.
- Far Western: : Kailali, Dadeldhura, Doti, Baitadi, Kanchanpur
- Collaboration: Funded by UK aid, Implementing partner: NEFSCUN with Sakshyam Challenge Fund.