Innovations in Nepal's Microfinance Sector and Benefits for Asia: A Case Study of Four Savings and Credit Cooperative Societies Operating in the Hills of Nepal
This case study is based on four savings and credit cooperative societies (SACCOSs) in Nepal's hill districts, covering different geographical regions (eastern, western, and central hill districts). It attempts to highlight some of the innovative micro finance products offered by the four SACCOSs to their members and targeting techniques they have used for reaching the poor.Each of the SACCOS profile was studied in detail taking into consideration their insurance schemes, savings products, and loan products as well as their diversification etc. Since membership of SACCOSs is voluntary, only the aware and literate join. Therefore, the case study examines their targeting techniques to get more disadvantaged people to join them. Conclusions include:
- SACCOSs are financially sustainable and are in a position to provide a range of innovative microfinance services, meeting the needs of people living in hills;
- Services of SACCOSs had a positive impact on the lives of its members and their families;
- To determine a new product, one must know precisely what type of savings, credit, and other micro finance products will be convenient and opportune for the clients and which delivery mechanisms are feasible.