The State of Microfinance: Depth & Breadth
This presentation surveys the current microfinance scenario in Nepal, and offers recommendations to improve outreach. Although microfinance outreach has increased globally in the last decade and a half, demand for microfinance is largely unmet. Nepal's microfinance sector has seen remarkable expansion with eleven microfinance development banks providing services to 392,770 rural people, mostly women. The aggregate outreach of Nepal's microfinance sector, including Savings and Credit Cooperatives (SACCOs), Small Farmers Cooperatives Ltd. (SFCLs) and Financial Intermediary NGOs (FINGOs) represents 4% of population and 14% of those below poverty line. The distribution however, is skewed with lower coverage in less accessible hill areas. Finally, the note states that microfinance outreach in Nepal can be increased by:
- Increasing expansion speed;
- Mapping poverty and available services;
- Increasing outreach to hilly regions;
- Increasing information about inclusiveness;
- Modifying existing laws to suit microfinance sector requirements;
- Ensuring strong commitment by the government and other official agencies.
