Micro Credit project supported by Fund for Social Enterprises- Japan,

Summary

Micro Credit Project Supported by the Fund for Social Enterprises – Japan. Program Approval by the Social Welfare Council: The Social Welfare Council has approved the implementation of the micro-credit program in the Kailali and Lalitpur districts. Supported by the Fund for Social Enterprises – Japan, the initiative aims to promote microfinance and livelihood opportunities for individuals with disabilities through self-help group engagement. Self-Help Group Meeting was held with the core members of six self-help groups in the Kailali district. During the session, the Association announced the expansion of the program to include skill-based training and business loan support specifically tailored for people with disabilities.

Progress Repor (March–May 2025)

1. Main Activities

1.1-Program Approval from the Social Welfare Council:

        The program has been approved by the Social Welfare Council to work with self-help groups in the Kailali and Lalitpur districts. Supported by the Fund for Social Enterprises- Japan, the program focuses on microfinance and livelihood initiatives for people with disabilities.

1.2- Self-Help Group Meeting

 A meeting was convened with the core members of six self-help groups in Kailali district. During this meeting, the Association announced the approval of additional programs focused on providing skill-based training and business loans for people with disabilities.

 The session also included a review of the previous loan program, with discussions centered on its effectiveness and areas of improvement.The meeting took place at the Association’s office in Tikapur ( Kailali) and was attended by approximately 28 key representatives from the six groups. Notable participants included:

• Mr. Prakash Ghimire, Deputy Director, Central Office
• Mr. Khagendra Gharti Magar, President, Kailali District Branch
• Mr. Amar Bista, Secretary
• Miss. Bhagbati Dhami, Field staffs

1.3- Capacity Building Program on Microfinance and vocational plan  to SHGs at Kailali.

An capacity build up training was conducted from March 31 to April 3, 2025, targeting 50 core members of six self-help groups for people with disabilities in Kailali district.

The 2-day training program covered the following key areas:

• Rehabilitation Plan
• Vocational and Skills Training
• Business Plan
• Market Analysis
• Identification of potential trainees and training providers
• Microfinance practices and loan policies

The sessions were jointly facilitated by Mr. Prakash Ghimire and Mr. Khagendra Gharti Magar. The program was hosted at Janaki & Joshipur Rural Municipality and witnessed the participation of several key local officials, including:

• Mr. Kamal Mahato, Chairperson, Janaki Rural Municipality Ward
• Ms. Pramila Shah, Head, Social Development Branch, Janaki RM
• Ms. Rekha Wadayak, Vice Chairperson, Joshipur RM
• Ms. Anita Mishra, Head, Social Development Branch, Joshipur RM

There was active engagement from people with disabilities, their families, and local government representatives

1.4- Capacity Building Program on Microfinance and vocational plan for Self-Help Groups in Lalitpur

Two self-help groups—Disability Development Society Khokana and Jal Disabled Society Harisiddhi, Lalitpur district, each consisting of 09 members with disabilities from Lalitpur Metropolitan City (Ward No. 21, Khokana and Ward No. 28, Harisiddhi), successfully completed a two-day capacity building program focused on microfinance transactions and vocational plan-based training.

A total of 18 participants attended the program, which was facilitated by Mr. Prakash Ghimire, Deputy Director of the Nepal Association for the Welfare  of  the  Blind Central Office, and Mr. Prem Bhakta Dangol, Program Assistant.

On the first day of the training, the program was observed by Mrs. Yuka Timilsina, a representative from the Japan International Cooperation Agency (JICA), queries with participants about   the project Phase 1 and conduction training.

This initiative is part of a broader program involving eight self-help groups across Kailali and Lalitpur districts, aimed at recommending persons with disabilities for further skills-based training in the near future.

2. Staff Involvement

Ms. Bhagwati Dhami,   a staff member from the Kailali District Branch and Mr. Prem Bhakta Dangol  (program Assistant)   Lalitpur district, played a supportive role during  the self-help group meeting and the capacity buildup training program.

Staff members are currently involved in collecting data on:

• Individuals interested in receiving skill-based training
• Local organizations and companies capable of providing such training

3. Income and Expenditure

• Expenditure: NPR 236,575.00 was spent to organize 1 meeting & the 2-day training program involving 8 self-help groups from 3 events.
• Income: NPR 20,000 was recovered from previous loans disbursed under this same program.

4. Challenges Identified

Although individuals who received loans in the past initially started income-generating activities, many of these businesses were not sustained over time.

Only those who had family support, access to local markets, and the active involvement of people with disabilities themselves were able to maintain their enterprises long-term.

5. Suggestions, Special Events, and Solutions

Previously, loans were issued without any prerequisite training. This approach often led to unsustainable business practices.

Now, the Association has adopted a more strategic and practical policy:

• Provide skill-based training  to the interests of young man & women with disabilities
• Align training with local market needs
• Issue loans only after relevant training has been completed with vocational plan
• Issue loan only 50% for total estimate cost of vocational plan.

This updated model is expected to:

• Improve the utilization and effectiveness of loans
• Equip people with disabilities with tangible skills
• Encourage long-term engagement in vocational and income-generating activities

6. Success Stories

Despite some challenges, several beneficiaries of the past loan program have demonstrated notable success:

• Lakhan  Mahoto Chaudhary, a wheelchair user resident of Dharmapur village,Janaki Rural Municipality at Kailali district, and her wife, Ganga Chaudhary, a visually impaired women  have successfully operated a small business using the loan provided has become financially self-reliant by running a sewing and tailoring business in his village.

Mr. Lakhan sews two pairs of shorts each day, earning Rs. 1,400 per pair, which amounts to Rs. 700 per day. As a result, he earns an average of Rs. 40,000 to Rs. 42,000 per month from sewing. In addition to this, he also teaches tailoring to interested members of the local community. Through this work, Lakhan has been able to provide a good livelihood for himself, his visually impaired wife, and their son.

 These cases reflect the potential of targeted support programs to bring meaningful and sustainable change to the lives of people with disabilities.

Mr. Lakhan Mahato, a person with a disability, has established a tailoring business. Several girls are receiving tailoring training at his shop.

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