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Raising Development Impact through Evaluation

Nepal: Rural Finance Sector Development Cluster Program

Evaluation Document | 4 November 2013

Validates the completion report's assessment of the project which aims to develop a sustainable rural finance system in Nepal to generate income and reduce poverty of rural households. IED overall assessment: Successful

Access to reliable and affordable financial services was crucial for the rural poor in Nepal to capture economic opportunities and break the vicious cycle of poverty. While increased financial intermediation was envisaged to contribute to political and economic stability in the rural areas, access to institutional financial services was severely limited, reaching only 28% of total population. The high-risk rural finance profile, repressive environment, and security concerns in rural areas made private sector participation in rural finance extremely difficult. Difficult terrain and topography inhibited the rapid deployment of private, institutional rural finance services on a larger scale. Wider sector reform was required to address the policy and institutional bottlenecks to the growth and development of efficient and sustainable services for the poor.

This report validates the completion report's assessment of the project. IED overall assessment: Successful


  • Project Basic Data
  • Project Description
  • Evaluation of Performance and Ratings
  • Other Performance Assessments
  • Overall Assessment, Lessons, and Recommendations
  • Other Considerations and Follow-up