Nepal: Rural Microfinance Project

Sovereign Project | 29237-013 Status: Approved

Latest Project Documents

Title Date
Rural Microfinance Project Oct 2008

Consulting Notices

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Procurement Notices

See also: Operational Procurement

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Procurement Documents

None currently available.

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Project Name Rural Microfinance Project
Project Number 29237-013
Country Nepal
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Strategic Agendas
Drivers of Change
Sector / Subsector

Finance - Banking systems and nonbank financial institutions

Gender Equity and Mainstreaming
Description The Project targets women below the poverty line that are least served by financial, technical, and social services. Beneficiaries will be provided with opportunities to increase their incomes and employment opportunities and improve their quality of life through the promotion of microenterprise development savings mobilization. The Project is designed to provide a sustainable mechanism for rural credit delivery through the use of nongovernment organizations small rural banks, and savings and credit cooperatives. The Project will provide a line of credit to finance a revolving fund for onlending to financial institutions and the provision of loans to mainly poor women for farm and nonfarm income-generating activities. The Project design allows for flexibility, and implementing agencies will be assisted to develop their institutional capacities and arrangements for the management of microfinance.
Project Rationale and Linkage to Country/Regional Strategy Nepal is one of the least-developed countries in the world. Poverty is pervasive and recent estimates suggest that about 42 percent of the population live below the poverty line. Feminization of poverty is on the increase. More than 50 percent of women are among the ultra poor, and about 14 percent of all households are headed by women, while only 6 percent of all farms are owned by women. One of the main objectives of the recently adopted Agriculture Perspective Plan (APP), which forms the basis for both Bank and Government development programs, is the increased participation of women and the reduction of poverty by about 35 percent over a 20-year period. The Project will help achieve the objectives of the APP and the Government's strategy for financial reform, which is being developed in collaboration with the Bank, the World Bank, and the International Monetary Fund. Poor households headed by women will only be able to purchase inputs if sufficient credit is readily available. However, women's access to microfinance is very limited, and households headed by women, in particular, depend mainly on moneylenders. Institutional credit to the poor constitutes only 24 percent of the total, and most funds go to nonpoor households with collateral. There is a need to coordinate and streamline the delivery mechanisms for microcredit in a financially viable and sustainable way. The Goverment's microfinance operations need to be consolidated so that the Government can concentrate on properly monitoring, supervising, and regulating the sector.
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Kathmandu
Safeguard Categories
Environment B
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services All consultants will be recruited by NRB in accordance with the Bank's Guidelines on the Use of Consultants.
Procurement Nepal Rastra Bank, Rural Microfinance Development Institute, and the implementing agencies will be responsible for procurement of all vehicles and equipment for their own use, including those to be provided under loans to the IAs. Procurement will be in small packages except for the purchase of vehicles.
Responsible ADB Officer ADB Disclosure
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Rural Microfinance Devt Centre Ltd(Bittiya Sanstha
Shankar Man Shrestha
Nepal Rastra Bank
Mr. Sushil Ram Mathema
Microfinance Department
Concept Clearance 17 Nov 1994
Fact Finding 26 Apr 1998 to 11 May 1998
MRM 29 May 1998
Approval 08 Dec 1998
Last Review Mission -
PDS Creation Date 05 Feb 2007
Last PDS Update 17 Oct 2007
Title Document Type Document Date
Rural Microfinance Project Project/Program Completion Reports Oct 2008

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Nepal: Rural Microfinance Project Validations of Project Completion Reports Dec 2009

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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  • 10 Mar 2008 | Project Result / Case Study

    Funding a Microcredit Revolution

    A rural microcredit scheme is not only reducing poverty in rural Nepal, but also empowering women and breaking down gender barriers. Lamadanda - Against the backdrop of the Himalayas, 50 members of the Lamadanda Women's Self-Help Centre - all in uniform blue saris and traditional ornaments - have gathered together at the homestead of a member for financial transactions.