Reaching the Unreached: Case of MEDEP Modality for Microfinance Service Delivery in Nepal

This paper documents innovations by the Micro-Enterprise Development Programme (MEDEP) to reach excluded populations in Nepal through microfinance services.

MEDEP is a multi-lateral donor funded poverty reduction initiative supported by the Ministry of Industry and the United Nations Development Programme in Nepal since 1998. MEDEP has been identifying the poorest of the poor, especially women, and ethnic and religious minorities. MEDEP:

• Has adopted a two pronged strategy of partnering with the Agricultural Development Bank and MFIs;
• Approaches the private sector, MFIs and commercial banks to build and improve partnerships that facilitate microentrepreneurs’ access to financial services;
• Has helped about 61% of microentrepreneurs of varied ethnic compositions and income levels to access financial services;
• Has supported financial service providers in maintaining depth and breadth of outreach, good portfolio quality and operational and financial self-sufficiency;
• Has provided effective focus on savings mobilization.

Finally, almost all MEDEP microentrepreneurs have access to either formal or informal sources of finance, reinforcing the fact that entrepreneurship development is instrumental in transforming un-bankable clients into bankable ones.