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Third National Microfinance Members’ Summit concludes

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KATHMANDU: Third National Microfinance Members' Summit held in Kathmandu has been concluded. The summit issued an 11-point declaration. Cooperatives and Microfinance institutions (MFIs) have resolved to move ahead in their respective fields in building a self-reliant, self-respecting and entrepreneurial society or community by minimising the adverse effects of poverty, unemployment and adverse environmental conditions identified by the conference. The participants of the summit have expressed their commitment to work as entrepreneurs to increase entrepreneurship in their respective fields to give concrete form to the slogan 'Let's spread entrepreneurship from house to house and make poverty zero'. Shankar Man Shrestha, chairman of the Summit Organising Committee and a microfinance campaigner also urged the members present to implement the slogan. Addressing the Summit, Shrestha, who is also the chairperson of the Center for Self-help Development(CSD), said that he was very excited to learn about the success stories created through microfinance. He also suggested that cooperatives and microfinance institutes not lend more than the required and prescribed criteria. He also said CSD would reward 10 successful entrepreneurs who have become entrepreneurs by taking loans from microfinance. It is mentioned in the 11-point declaration that every microfinance company should take initiative to develop at least one 'eco-village in the settlements in their respective field' within its jurisdiction. He said the 10 best eco-villages and three zero clubs will be selected and rewarded. Sobha Sharma, coordinator of the cultural sub-committee of the summit, said conclusions drawn from the discussions held during the various sessions of the summit were fruitful. She said that MFIs have not only produced women entrepreneurs and self-employed ones but also created opportunities for them to achieve leadership levels. "Those women have now become the 'success story' of the society and the nation," she said. Devi Maya Adhikari, Head of Jalpa Samudayik Laghubitta Bittiya Sanstha's Birauta Centre based in Pokhara, said that MFIs have succeeded in spreading the message that even uneducated women can take loans, venture, earn money and raise a family. She said, "In the past, economic hardship was an obstacle for women to become leaders. Now, women are becoming entrepreneurs in the villages, which has made it easier for women to become leaders. She said, "There are plenty of examples of women reaching the leadership level in social organisations. Those who used to become entrepreneurs by taking unsecured loans from microfinance have now reached the stage of expanding their business by taking loans and pledging assets to big banks." The participants at the summit said that microfinance has played a significant role in empowerment. On the occasion, three women who became successful entrepreneurs by taking loans from microfinance were rewarded. Babita Gurung, who is raising cattle in Tanahun's Bhanu Rural Municipality, Sarita Reule, another one raising cattle in Tulsipur, Dang, and Sarita Kumari Shah, who is cultivating vegetables in Rangeli-1, Morang, were rewarded Rs 25,000 each along with a certificate. Similarly, the summit organisers also provided scholarships to 10 poor students at Janajyoti Secondary School in Surkhet. The students were provided Rs 30,000 each. Likewise, a cheque of Rs 300,000 was handed over to school principal Narayan Sigdel. Bhoj Raj Basyal, a member of the Declaration Drafting Committee, said that microfinance has gained access to 6 million households. He said that the declaration was prepared by incorporating the message of the prime minister, remarks of the Acting Governor of Nepal Rastra Bank, Neelam Dhungana, the views received from expert sources and the points received from the comments of the women members. Four members including Basyal, Sarada Pokhrel and Hira kumari Thamdar contributed to the drafting of the resolution.

11-point declaration

Participating members of the summit will act as campaigners to increase entrepreneurship in their respective fields to give concrete form to the slogan 'Let's spread enterprise from house to house and make poverty zero'.
MFIs to facilitate the growth of entrepreneurship by measuring the growth of customer members, identifying potential entrepreneurial members and making them professionally competent entrepreneurs by coordinating with local service providers and local bodies.
To prepare details by identifying families who are still far from the access to microfinance and belong to the most deprived class in remote areas, and to make an action plan and implement it effectively. To develop a monitoring system for very poor families.
To review and implement working methods with full commitment to the basic value recognition and customer protection principles of microfinance services.
To effectively implement the act of giving credit information to the members of microfinance to save them from the burden of debt. To ask the concerned agencies to implement the system in such a way that credit information accessible to MFIs, also be accessible for the 'A', 'B' and 'C' class banks, financial institutions and cooperatives.
To ensure shortcomings in the existing working system, to make arrangements for the efficient use of credit, self-employment, savings mobilisation, insurance, security, and marketing, in order to reduce poverty.
To hold interactions in schools and colleges to discuss family budget, loans, savings, insurance, remittance, digitization, self-employment, entrepreneurship, and environmental protection.
To motivate the children (youths) of microfinance company members, to identify the local resources and possibilities and to become self-employed to run the business so as to minimise the harm to the environment by mobilising those resources from the family, local bodies and microfinance institutions. To promote innovation by contemplating that the nature of youth is creative. To provide financial services to such youths through microfinance institutions.
To make arrangements for the protection of microfinance Institution members by involving them in programmes such as credit insurance and microfinance in coordination with the insurance companies for the benefit and security of the members.

Every microfinance institution will take initiative to develop self-employed and self-reliant model village including sustainable agricultural system, water source conservation, plant conservation with minimal damage to the environment while minimising the deteriorating environmental impact.
Every microfinance company to develop an entrepreneur making centre in collaboration with at least one local secondary school.

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Published Date: April 13, 2022, 12:00 am

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