Microfinance Summit concluded with 16-point declaration

The first National Microfinance Members’ Summit Monday concluded by adopting a 16-point declaration.

The declaration announced to include the ultra-poor in the microfinance campaign and develop action plan to realize this goal.

“The microfinance will extend their services to the remote and rural areas, and formulate strategies to inspire the members to be micro-entrepreneurs by providing training for skill development and creative works,” read the declaration.

The summit declared to stop the practice of mobilizing loans without evaluating the customers’ necessity and capacity to repay. It announced to set appropriate and sustainable interest rate that would not create burden on the side of customers.

As the number of microfinance banks was more than sufficient for the country, request would be put to stop licensing microfinance institutions except financial intermediary non-governmental organizations (FINGOs) which are currently in operation, read the declaration.

The declaration has announced to expand health insurance programme all over the country, and initiate a separate company for the micro-insurance programme.

Legislature-Parliament’s Development Committee Chairman Rabindra Adhikari stated that microfinance services should be promoted as it was promoting entrepreneurship as well as helping in reduction of poverty and empowerment of women.

“There are very few economic opportunities for the poor. Therefore, the government should study business potential for the micro-entrepreneurs, promote their products and help in financing,” said Adhikari.

Shiva Raj Shrestha, deputy governor of the Nepal Rastra Bank, said that the microfinance would be more effective if there was skill development training for their members.

Damodar Bhandari, State Minister for Ministry of Finance said that the declaration of the summit would be an important learning for the government. “The government would try to address the demands that the summit has put forth,” he said.

Shankar Man Shrestha, chairman of the Organizing Committee, said that Nepalese microfinance has become a model for other countries.

The conference was organized by the principal Microfinance Institutions (MFIs) and co-ordination of the Centre for Self-Help Development (CSD).

Forty-one microfinance banks, 25 non-government organizations and about 100 cooperatives are offering microfinance service across the country. They altogether are catering service to 1.8 million families.

uggested discouraging the practice of obtaining loans from more than one microfinance institutions.

About 22 female microfinance members shared their experience with the microfinance services.

The conference is being organized by the principal Microfinance Institutions (MFIs) and co-ordination of the Centre for Self-Help Development (CSD).

Forty-one microfinance banks, 25 non-government organizations and about 100 cooperatives are offering microfinance service across the country. They altogether are catering service to 1.8 million families.

According to the latest data, about Rs. 300 billion loan was mobilized by the microfinance institutions and the repayment rate was 99 per cent.