Paper
Credit for Micro Enterprise Development (CMED Module)
Designing a microcredit delivery model for promoting microenterprises
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This study aims to prepare an operational manual of microcredit for the Microenterprise Development Program (MEDEP) in Nepal.
The manual will guide MEDEP in achieving its goals of poverty reduction of low-income families through microenterprise development and capacity building of service delivery mechanisms. The study:
- Describes key models of microcredit operating in Nepal;
- Identifies the best alternative microcredit model that MEDEP can adopt;
- Prepares an operational manual on microfinance and credit management to provide specific guidelines to MEDEP staff and partner agencies;
- Assesses options that would provide microentrepreneurs with credit on an institutional basis within the legal framework.
The study highlights the need for a new and a strong microcredit model which would help promote microentrepreneurship in accordance with MEDEP principles. Finally, the study recommends that MEDEP link with a special microcredit program called Credit for Microenterprises Development that would be implemented through the NGO, Rural Development Association.
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