MoU between Heifer and Machhapuchchhre Bank to Expand Access to Finance for Smallholders
November 13, Kathmandu – Heifer International Nepal signed MoU with Machhapuchchhre Bank Limited to expand access to finance for rural smallholder farmers, small and medium enterprises and other value chain actors though Heifer supported cooperatives as “Financial Intermediaries”. The major domain of financial intermediaries includes wholesale lending to cooperatives, direct lending to individual entrepreneurs, cooperatives as branchless banking agent, remittance agent, and other similar embedded services. This MoU is also the follow up of the Bank’s and Heifer’s collaboration with the Sakchhyam – Access to Finance program supported by UKAid. Succeeding the MoU, Machhapuchchhre Bank Limited has signed agreement with four women led cooperatives in Satbariya, Dang. As per the agreement, the bank will provide direct loan of USD 1,000 to USD 3,000 to smallholder women farmers without collateral, facilitated by the cooperative. This agreement has aimed to transform poor families to self-employed families and immensely improve the livelihood of smallholder farmers, particularly women.