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Institute of micro-finance and cooperative development.

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Domestic Visit of MFIs: East Meets West

“Learn as if you were to live forever” – Mahatma Gandhi

Realizing the immense potential to learn from each other through experience sharing and field visits within the country itself, the Centre for Self-help Development (CSD) initiated the Domestic Study Visit of Microfinance Institutions (MFIs) in the year 2016.

Following the success of the first visit, a study visit ‘East Meets West’ was organized for a group of ten Chief Executive Officers (CEOs) and Board Directors representing MFIs from East and Central Nepal. The officials were representatives of Shree Navodaya Multipurpose Co-op. Society Ltd., Jhapa; Sahara Nepal SACCOS Ltd., Jhapa; Jeevan Bikas Samaj, Morang; Nerude Laghubitta Bikas Bank Ltd., Morang and Mirmire Microfinance Development Bank Ltd., Kavre. The team traveled through Banke, Dang, Bardiya, Kailali and Kanchanpur district to observe the praiseworthy work carried out by their counterparts in Mid & Far Western Nepal.

The eight-day visit spanned from March 17 – 24, 2018 during which the team engaged in experience sharing with the Board Directors and senior management of the host organizations, visited branches and interacted with branch level staff, observed center meetings and interacted with microfinance women members and visited their enterprises.

The team was bowled over by the warmth and hospitality extended by Nepal Women Community Service Center (NWCSC) and Rural Women Development Centre (RWDC) in Dang; Mahila Upakar Munch (MUM) in Banke; UNYC Nepal in Bardiya; Kisan Bahuuddeshiya Sahakari Sanstha Ltd. in Kailali and Shree Udayadev Bahuuddeshiya Sahakari Sanstha Ltd. in Kanchanpur.

Orienting the participants on the domestic visit, team leader Mr. Shankar Man Shrestha, Chairman of CSD briefed, “This is a goodwill visit to promote understanding and solidarity among the stakeholders of microfinance. The exchange of experiences and cross-learning between MFIs will cement the foundation of a stronger sector. The visit is also organized to understand the geographical, ethnic, cultural and resource diversity between regions.”

The team was impressed by the development of the microfinance sector in the region and the efforts made by the local MFIs in providing the best possible services to their members. They found that both MFIs in Dang, NWCSC and RWDC were actively involved in community services beyond just their microfinance members. Both the female headed organizations were invested in introducing new technologies and financial literacy programs in their network area. In Banke, the participants realized the importance given to agriculture and agricultural products by Mahila Upakar Munch.

The participants were impressed with the work done by UNYC Nepal for the Tharu community, in both providing financial services to the deprived and disadvantaged groups as well as providing excellent employment opportunities for the local youths. During the visit to a tailoring training facility supported by UNYC Nepal in Rajapur, Bardiya the team was surprised to observe the facility being successfully operated by the member and noted her contribution in developing other women tailors locally.

The visiting members found that the west was marching ahead in digital finance and at the same time keeping their members in the heart of every activity. The financial literacy program adopted by Kisan Bahuuddeshiya Sahakari Sanstha Ltd. had shown positive results in the pilot tested centers as members reported increased savings as they became more aware of planning their expenditures and curbing unnecessary expenses.

“I found the members in the west more disciplined and mindful taking loans only as per their need. It is impressive that these MFIs are providing services almost at par with commercial banks,” said Mr. Sudhir Shrestha, Board Director of Nerude Laghubitta Bikas Bank Ltd.

Mr. Phanindra Karki, Chief Manager of Shree Navodaya Multipurpose Co-op. Society Ltd. observed, “Proper client identification is the crux of any microfinance program to be successful as we have witnessed here in the west. These MFIs are running successfully as they are working within the target group. Secondly, in-depth credit appraisal must not be overlooked.”

While traveling across the region, the team observed the immense potential for agriculture and enjoyed the vast expanse of wheat fields on either side of the road along with various vegetation and plantations. During the discussions with the branch staff, they found that most of the organizations also had provisions for in-house JTAs that provided training from branch to branch on agriculture related activities. These trainings were well received and much appreciated by the members. The team made note of it and expressed their intention to employ JTAs back in their respective organizations.

Mr. Gyanu Nath Mainali, Joint Secretary of Sahara Nepal SACCOS Ltd. shared, “I have experienced greater learning through this domestic visit than my visit to the Philippines. This visit has exposed me to the central role that a Board Director plays in making or breaking an organization. We must focus on quality microfinance services over quantitative expansion.”

Appreciating the focus on quality, credit plus services and digital finance Mr. Sanjay Mandal Director of Jeevan Bikas Samaj said, “Personally, this has been the best and most informative study visit for me. Shankar Man sir’s motivation and enthusiasm in all field visits is invigorating for us. The level of staff development and team spirit in the visited MFIs is remarkable. So far we saw minimal duplication in the villages, and I hope it continues to remain so. I am also equally impressed with the Tharu culture and how the locals have strived to keep it intact.”

Mr. Mani Kumar Arjyal, Managing Director of Nerude Laghubitta Bikas Bank Ltd. remarked, “This visit has been a great educational platform, both culturally and geographically. I request CSD to organize another such visit as many of our Board Directors have missed out this time. I found the women members loyal, the staff dynamic and the Board Members actively involved. If we take this learning and linkage forward, we will benefit greatly.”

Summing up the visit, Mr. Shankar Man Shrestha said, “Common sense and sincerity is required at all levels: Board Directors, staff and members for an organization to be successful. Your organization and your members must grow at the same pace. It cannot be a lopsided development where only you reap the benefits of growth. Microfinance is for the socio-economic up-gradation of the poor.” He added, “It is good to see the use of technology in the region. Along with financial literacy programs, I advise you to concentrate on the health of your members as well. Simple health technologies like a measuring the blood pressure and sugar tests at the branches will excite the members.”

Mr. Shrestha ended by saying, “Let us mobilize a group of microfinance women members that can sensitize and motivate the rest. The women we have met in the west are good examples of loyalty, discipline and awareness on the mishaps of duplication and multiple borrowing.”

The entire team unanimously agreed on the impressive development of microfinance in the mid and far western region. The eight day study visit ended on a high note where the team was able to learn from and provide learning experiences to the various MFIs. The visit which has facilitated solidarity and understanding among the MFIs was coordinated by senior officer of CSD, Ms. Stephaniema Rana.

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