CENTRE FOR SELF-HELP DEVELOPMENT

Institute of micro-finance and cooperative development.

Check Mail
  • Home
  • News & Events

Microfinance Cooperatives Prepare to Cope with Corona Virus

CSD organized a virtual interaction with its member cooperative organizations on August2, 2020 to discuss on problems and challenges and opportunities arisen from the corona virus pandemic in the microfinance operation of the cooperatives in different parts of Nepal.

The program started with the welcome remarks by Mr. Bechan Giri, Executive Chief of CSD and was attended by 28 different board officials, CEOs and senior executives. During the meeting, each of the participating organizations made a presentation on the impact of the corona pandemic on their operations and the business of their member clients. The participants also shared their views, experiences and learning on the present scenario.

Speaking on the occasion, Chairman of CSD Mr. Shankar Man Shrestha said “Compared to other sectors of the economy the damage caused by Corona Pandemic to microfinance sector is minimal and can be managed in a few months through hard work and motivation to own staff and members.” He advised the participants not to lose hope in present condition. Chairman Shrestha also suggested the participants to re-orient their staff on the value and fundamentals of the microfinance and maintain good reputation among the members and the communities. He further said “The pandemic has given us time to reflect on the past mistakes we made and ensure that they don't repeat again in coming days.” He said that duplication of clients and multiple financing has damaged the microfinance industries more than anything else. He reminded the participants, “Cooperatives are not meant to create trouble in clients' lives but to improve their livelihood and upgrade them as entrepreneurs. Profit should not be sole end of microfinance operation. It will automatically happen, if we could raise their wellbeing and income by engaging them in micro-enterprises. Now a time has come to develop second generation of microfinance clients with the advent of the educated masses of the member's children, they will give a boost to the economy.”


Way Forward of Cooperatives Webinar
1) Classify the members on the basis of the following based on the operational status of mid-July 2020 AD (Ashadh 31, 2077 BS):
a) Members who paid installment (principal and interest) even during lockdown
b) Members who paid interest only at the time of lockdown
c) Members who have been paying on time and are willing to pay but are unable to pay due to the shutdown of their businesses.
d) Members who are willful defaulters.
2) Reschedule the repayment plan of the disciplined and non-willful defaulters in consideration of their capacity to repay and assist them to re-establish their businesses.
3) Prioritize financing on agriculture and agro-based businesses to reduce imports from foreign countries.
4) Adopt new technology for providing efficient and effective services to members.
5) Penetrate services down to the poorest, the deprived and marginalized group. 
6) Interact and encourage the children of the members to become self employed as the second generation of the members.
7) Encourage and finance youths returning from abroad to become self-reliant and self-employed in their own villages.
8) Stop client duplication and multiple financing to control over indebtedness of members and probable delinquency.
9) Build network among the local institutions for marketing of the products of the members by coordinating with the local bodies.

 

News

Announcements