Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd. (SKBBL) core business is to provide wholesale credit to Small Farmers Agriculture Cooperatives Ltd. (SFACLs) and other MFIs. In order to obtain micro finance services from the financial institution, SFACLs and other MFIs apply for affiliation. SKBBL provides wholesale credit after ensuring that the SFACLs or MFIs have met all the criteria laid down by the financial institution. Besides providing wholesale credit, the financial institution also provides services for institutional capacity building, institutional audit, need analysis and identification of SFACLs and also has been doing monitoring and supervision of affiliated SFACLs and MFIs.
So far, the financial institution has been, mainly, providing short term micro credit and Livestock Credit for meat since FY 2010/11 (scope of livestock credit has been widened since FY 2014/15 including livestock credit for milk too and now called livestock credit for meat and milk). The financial institution has achieved encouraging triumphs and exciting participation of small farmers in the renewable energy credit program started since FY 2014/15. Similarly, in the Livelihood restoration credit program started for communities of earthquake affected districts, since 2015/16 also has got exciting achievements and noticeable participation from small farmer communities. On the credit provided, interest should be paid on monthly basis and the instalments of the principal are to be paid on quarterly basis. Moreover, on the livestock credit, renewable energy credit and livelihood credit, a grace period of first 6 months have been provided. The term of the credits is maximum 3 years. Other different credit programs are-
Livelihood Restoration Credit Program (Special Credit for Earthquake affected Communities)
Skbbl has been providing livelihood restoration credit through SFACLs to small farmers in order to support reviving from adverse effect on income generating activities due to the April 2015 earthquake. The financial institution has been implementing this program in financial support from Asian Development Bank and Ministry of Finance of Government of Nepal targeting to three districts affected.
As per the MOU signed with the Youth and Small Entrepreneur Employment Fund, SKBBL had provided credit targeting youths and small entrepreneurs since 2011. The entire loan on-lend under this heads are rolled back and the borrowings were repaid to the fund. This program has been discontinued since 2013.
Working Capital Credit for Cooperative Tea Industry
As per the direction from ministry of finance of government of Nepal, SKBBL has been providing working capital credit for cooperative based tea processing industry as a step for enhancing access of farmer in value chain of agricultural products.
Agricultural Loan : This loan is provided to 7 districts of mid-western and western regions where improved seed to farmer program is applicable. The loan has been disbursed from May 2018.
The targeted communities wherein institutions can invest wholesale credit are as follows:
Families or individuals whom are unable to sustain themselves through their yearly harvest
Families or individuals who do not have regular income and have difficulties surviving.
Families or individuals who do not owe overdue credit to the government and other financial institutes.
Dalits, Madhesis, underprivileged communities, the rural poor, women, and microentrepreneurs.
Since its establishment, SKBBL has invested Nrs. 98.03 Billion on microfinance, collected Nrs. 76.66 Billion from 1146 different institutions, and has an outstanding amount of Nrs. 21.37 Billion.
Shiva Bahadur Magar (father) and Jhalak Bahadeer Magar (son) engage
in poultry farming and are in the process of expanding after having received
a loan from the wholesale credit program.
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