Baglung Microloans Scheme
administered by the Rotary Club of Baglung, Nepal
The Way the Scheme Works
In May 2013 We sent £2000 in cash to the Rotary Club of Baglung, and they have used this to provide small loans to individuals in the Baglung area so they can set up new businesses or improve existing ones. The typical loan is £150 (20,000 Nepali Rupees). The standard repayment is £7.50 (1000 N R) per month over a 20 month period until the loan is paid off (no interest). The repayments are consolidated back into the loan fund and new loans are made.
Following the Earthquakes in April 2015 it was evident that many of the borrowers were in severe difficulties, so we agreed with Baglung RC that repayments could be suspended, or loans written off, to help the borrowers back on their feet. We re-financed the scheme with an additional £2500 in June 2015.
Recycling the loans continuously in this manner means that we expect the numbers of people taking advantage of the scheme will increase all the time. So far 22 people have had loans and have paid them off, while a further 22 are in various stages of repayment with somewhere between 1 and 15 repayments to go.
We received our latest update from Baglung in September 2016, including some case histories.
Ramjan is 64 years old and lives with his 14 family members. A MicroLoan enabled him to set up a Trunk stall selling biscuits, cookies, chocolates, tomatoes and beans. With the profits his family lives and he is able to send one of his children to school. He would like to send all three of his children to school, so we will continue to support him to grow his business so that he is able to do this. Now he is earning approximately Rs. 10000.00 rupees in a month.
Arun is 47 years old and mentally disabled, and lives with his wife and child in Baglung. His first loan in 2015 was NRs. 20000, and was used to set up a small shop, His house was destroyed in the Earthquake. However, in the last year, Arun’s business has grown considerably, and he is now repaying every month on a regular basis. Arun can purchase more products to sell on, increasing his business profits.
Buddhi is 40 years old and lives with his children and wife in Baglung Bazar. With Micro Loan support, Buddhi brought a Rickshaw cycle and delivers goods around the market. With the profits he can support his family, and is able to send one of his children to school. He is very laborious and works hard, and as a result he was able buy a small piece of land to build a house. so we will continue to support him to grow his business so that he is able to continue his economic growth. Now he is earning approximately NRs. 12000.00 rupees in a month.
Shivraj is 38 years old and he is a farmer, and lives with his wife and 3 children in Tatopani village, near Baglung. Shivraj has been supported by MicroLoan Scheme since 2013, His first loan was Rs. 20000.00, and was used to set up a small vegetable farm, In the last 3 year, Shivaraj’s business has grown considerably, and having paid off a loan, he received a further loan. Shivaraj has now purchased a small trolley truck to deliver the vegetable to the market to sell on, increasing his business profits. This has enabled him to send his children to school and college, as well as supporting other relatives in his family.
Dil Maya and Bishnu Kumari
Many poor, rural adolescent women become jobless in Nepal - as did Dil Maya and Bishnu Kumari, 30 and 32 years old, belonging to a poor scheduled tribal family in Rudrepipal. They wanted to learn tailoring skills rather than depend upon intermittent work as daily-waged agricultural labourers. With the help of Concern Nepal(CN)and RC Baglung, Dil Maya and Bishnu Kumari were provided with skill training in a three month tailoring programme. In the programme, Dil Maya and Bishnu Kumari learned the basic skills of tailoring. This included measuring, cutting and sewing clothes for children and women. After successfully completing the programme, Dil Maya and Bishnu Kumari were provided with a Micro Loan Scheme to buy a sewing machine in 2015 . Dil Maya and Bishnu Kumari were now using their new sewing machine, stitching clothes for children and women of nearby families. Having acquired these skills and the means to apply them, Dil Maya and Bishnu Kumari are very happy. Their families are also happy as their daughters now have a skill that helps them to be independent. They no longer have to depend on others for their future family needs.