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Heifer Nepal and NCBL’s Landmark Initiative in Empowering Women-led Cooperatives

-By Prakash Katwal [Program: VITA (A2F)]

On March 30, 2025, Heifer International Nepal, in collaboration with the National Cooperative Bank Limited (NCBL), marked a significant milestone in financial empowerment by distributing symbolic loan cheques to women-led cooperatives in Dang. This initiative strengthens access to finance for smallholder farmers and agribusinesses, fostering economic growth and sustainable livelihoods. The event was well-received by local government officials, media personnel, implementing partners, and members of the Social Entrepreneur Women’s Cooperatives (SEWCs), all eager to contribute to its success.

A Strategic Partnership for Financial Inclusion

The event was rooted in a five-year agreement signed between Heifer International Nepal and NCBL on February 4, 2025. Under this agreement, NCBL has committed to investing US $746,270 (NPR 100 million) in wholesale and business loans to 15 SEWCs promoted by Heifer. In addition to financial backing, these cooperatives will receive business and financial capacity-building support.

To mitigate financial risks and encourage lending, Shared Wealth Ventures, LLC has provided a 10% guarantee of the total loan amount, with Heifer Nepal facilitating the process. This innovative financing model aims to unlock capital for agribusiness development, enabling women entrepreneurs and smallholder farmers to expand their businesses, create jobs, promote environmentally friendly agriculture practices, and contribute to the local economy.

Loan Distribution and Impact

As part of this initiative, a total of US $634,239 (NPR 85 million) has been approved by NCBL, with US $164,179.47 (NPR 22 million) already disbursed. During the event, symbolic loan cheques were handed over to the following cooperatives:

• Dipan SEWC Ltd., Lamahi Municipality-7: US $149,254.06 (NPR 20 million)
• Nilkamal SEWC Ltd., Lamahi Municipality-1: US $111,940.55 (NPR 15 million)
• Jyamire SEWC Ltd., Ghorahi Sub-Metropolitan City: US $74,627.03 (NPR 10 million)

Beyond this guarantee-backed scheme, NCBL has approved an additional US $1.36 million for other Heifer-supported cooperatives that meet collateral and eligibility criteria.

This collaboration builds upon past successes. Previously, Heifer and NCBL deployed over US $1.2 million in loans to 30 cooperatives, benefiting 2,226 farmers. The cooperatives have demonstrated remarkable performance, maintaining a default rate of less than 1% since the partnership began.

Overcoming Financing Barriers in Nepal

Despite such successes, access to credit for Nepal’s agricultural and cooperative sectors remains challenging. Economic uncertainty, policy changes affecting interest subsidies, political instability, and asset quality concerns have made banks hesitant to disburse loans. This makes the Heifer-NCBL partnership even more crucial in bridging the financial gap and ensuring continued support for smallholder farmers.

Strengthening the Credit Process with Bank Sathi

A key component of this model is the integration of Bank Sathi, a Heifer Nepal initiative that trains local women to support cooperative lending. These trained resource persons play a vital role by:

• Aggregating cooperative information and small loans to align with bank revenue goals.
• Assisting in loan applications and ensuring efficient credit utilization.
• Monitoring loan repayment and providing financial literacy support to borrowers.
• Enhancing the scalability and sustainability of the financial model.

Commitment to Future Growth

Since 2018, Heifer Nepal’s facilitation has enabled over 12,000 families to access US $19.4 million (NPR 2.58 billion) in investments through various financial institutions. These interventions reduce risks for banks and ensure long-term financial inclusion for marginalized populations.

Looking ahead, Heifer Nepal and NCBL reaffirm their commitment to identifying the needs of smallholder farmers and cooperatives, further expanding financial opportunities, and driving sustainable economic development across Nepal.

This partnership exemplifies how strategic collaborations and innovative financing mechanisms can empower women-led cooperatives, enhance financial inclusion, and create lasting economic impact in rural communities.

Acknowledgments

Special thanks to Durga KC, Prakash KC , and Mahesh Acharya for their contributions in making this initiative a reality.