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Promotion of New MFIs

RMDC has been identifying potential MFIs from among the existing NGOs or cooperatives based on their institutional work profile, capital, performance and visions & commitments of their leaders towards operating sustainable microfinance for reduction of poverty, and the feasibility of microfinance program in their planned geographical areas. RMDC officials also make a number of visits to different districts for identification and development of such institutions. There is still a greater need to promote MFIs that are committed to expanding microfinance services particularly in the remote hills and mountain areas in the country. The sequential steps that are followed by RMDC is presented below.

• Potential institutions (NGOs, cooperatives, banks) are identified based on their institutional work profile, experience and commitment towards microfinance;
• An exposure visit program is organized for the executive committee members of the interested potential organization to have a self-study of best practices of microfinance;
• After the visit, the participating members are invited to take part in a three-day interactive orientation program, where participants share their experiences and resource persons facilitate discussions on the major issues, such as essentials of microfinance, steps of implementing microfinance program, factors affecting viability and sustainability of MFIs, and process of determining appropriate interest rate .
• A few field staff of the selected institutions are provided with a two-month long on-site practical training on operational systems at field offices of successful MFIs;
• The staff of the institutions are also trained on PRA/PWR methodologies, which they can use to assess problems and potentialities for implementing microfinance programs in an area, and to identify poorer households to include as members or clients;
• A few officials of the institutions are provided with training and on-site guidance on preparing their own three-year business plans;
• The institutions are given on-site consultancy on establishing appropriate operating systems (e.g. accounting, MIS, reporting, monitoring and supervision, internal control, etc.) and on organization of pre-group training and centers of members or clients;
• Regular off-site and on-site monitoring and supervision of the borrowing institutions are undertaken; and
• Special on-site technical assistance is also given to an MFI as per its need and demand.