Currently MNBBL is exclusively focusing to the poor women in its microfinance programme. Only one member from one household will be eligible for the programme. By creating homogenous group, each member will feel herself as equal stature and can influence over the other members to create peer support and peer pressure.
Members only from the local community enable the group sustainability and mutual trust among group members. Thus; each targeted members should:
- Be a member of the household of land having less than 15 Kattha in terai or 20 Ropani in Hill, un-irrigated land per five-persons family,
- Be a member of the household of unemployed or no family members employed in any government or formal sector,
- Be from different family tree; not be in blood relation with any other member in the same group,
- Have per capita annual income NRs. 19261.00 or per capita daily income US $1.25 or less,
- Be aged between 16-55 years,
- Be from similar socio-economic status,
- Be from the same neighborhood, who know each other and having mutual trust in financial transactions,
- Not be a member of any other MFIs
MNBBL has been proving its microfianance services in five different modality. They are:
- Modified Grameen Model
- Joint Liability Group Model
- Individual Lending Model
- MCDC model (wholesale lending to groups)
- Agent model
Generally; groups are formed of five women members who meet monthly basis for microfinance transactions. Centers are established with at least two groups to six groups. Group members are liable to pay the loan and mandatory savings installments if one group member fails to pay. Loans are disbursed on the basis of group guarantee and collateral.
Individual loans are disbursed only in collateral basis. These loans are larger in size with compared to group based loans. Each of the lending methodology is designed to create high credit discipline thorough peer pressure and peer support.
UNIQUENESS IN PROGRAMME
The Microfinance programme of Muktinath Bikas Bank Ltd is quite difference than other MFIs. The bank’s programme is scaled down to fulfill the financial demands of low income people. MNBBL provides doorsteps services to its clients. The programme is unique due to:
- Enhancing access of financial services to low income & collateral less people by going their doorsteps in rural areas i.e. covering all communities of the working area,
- Educating targeted women as well as their guardians about on MNBBL integrated financial and non-financial services, methodology, loan utilization, group liabilities etc.
- Door step financial transactions facility,
- Client friendly (based on cash flow) repayment frequency,
- Rigorous target client selection process,
- Need based designed financial products,
- Protecting clients through risk covering mechanism like social security programmes, life and livestock insurance policy and remittance service,
- Linking graduated clients from microfinance programme to modern banking facility of MNBBL,
- Women empowerment, leadership and skill development training provided to clients on regular basis.