NESDO Nepal’s Loan Product:

NESDO Nepal continues to keep reforming its loan products according to the changing necessity of the clients so as to support and strength the socio- economic condition of the ultra-poor community. NESDO Nepal has been providing various kinds of loan in different categories without collateral to its clients. At present NESDO Nepal granted a maximum amount of Loan Rs.200000 to its clients based on group guarantee. Up to 15th January 2018   NESDO Nepal disbursed (Rs.15116351946) 15116  million. The Loan Product of NESDO Nepal is broadly divided in to three categories.

1. Productive Loan .
2. Social Security Loan .
3. Special Loan.

Productive Loan:

Under this loan categories clients take loan for productive purposes. Under this category four types of loan has been available for clients.

1.1. General Loan:

This is basic loan for NESDO Nepal micro finance clients. This loan is provided for productive purpose /income generating activities only. When a new client enrolls in the program, she/he is eligible for general loan maximum up to Rs. 90000 . The initial loan size is Rs. 50000 and Every year the loan size will increase by Rs.10000.The repayment can be made within 12 months from the loan disbursement.

1.2. Agriculture/Live Stock Loan:

In order to promote agriculture NESDO Nepal provide agriculture/live stock loan to its clients.The loan size start form Rs.80000 to maximum up-to Rs.150000.Clients can take this loan for agriculture production and live stock business. The repayment can be made within 18 months from the loan disbursement.

1.3. Business Loan:

This Loan is especially designed for small business group member running small business and needs working capital for the same.Clients having business already can take this loan at the same time clients wants to start a new business can also take this loan by submitting business plan.The 1st loan cycle is starting form Rs. 90000 and the maximum loan size is Rs.200000. The repayment can be made within 18 months of the loan disbursement.

1.4. Micro enterprise Loan:

This Loan is especially designed for Micro enterprise group member running small business and needs working capital for the same.Clients having business already can take this loan at the same time clients wants to start a new Micro enterprise can also take this loan by submitting business plan.The 1st loan cycle is starting form Rs. 100000 and the maximum loan size is Rs.300000. The repayment can be made within 30 months from the loan disbursement.

1.5. Microenterprise Loan With Coleteral :

This loan Product is designed to address the need of the Missing Middle. The Loan Size is Rs. 300000 to Rs.1000000. 

2. Social Security Loan:

Under Social security Loan NESDO Nepal provide eight different types of loan to its clients.

2.1. Consumable Loan:

In order to promote clients business or for the day to day needs of the clients a clients can apply for this type of loan. Generally a clients take this loan for purchasing computer, Refrigerators, Television,Telephone sets etc. She/he can use these items in her/his business or for personal use.As per the need of the clients NESDO Nepal can provide cash or consumable items.This loan is not available for all, it is need base. The maximum loan size is Rs.50000, to be repay within 12 months from the disbursement.

2.2. Festival Loan:

In order fulfill the need of the clients in the festive season, NESDO Nepal provides festival loan to its clients.The minimum loan size is Rs. 10000 and the maximum size is Rs. 20000. A clients can repay this loan at a time or can repay within one year from the date of disbursement disbursement. There is no monthly installment is applicable for this loan.This loan should not exceed 15% of the total loan outstanding of the branch office.

2.3. Emergency Loan:

In order to meet the emergency need such as in case of accident,sudden illness of client’s family member,school admission of clients’ children ,for maternity expenses and many more,NESDO Nepal provide Emergency loan to its clients. The clients can directly get this loan from the branch office depending upon his/her emergency,no center meeting is need for the approval of the loan. The branch manager is fully responsible for the emergency assessment and if he thinks the situation is right he can disbursed the loan.If the client repay the loan within one month then no interest will be charged otherwise she/he will pay the full interest.At the same time if it is found that the information provided by the client is wrong then the loan is treated as general loan.The Maximum limit is Rs.20000.The loan will be repaid within one year from the date of disbursement.

2.4. Senior Citizen/Single Women Loan:

Clients who lost their husband, or not having good relationship with family members and spend their life as single such types of clients can take this loan. In order to get this loan the clients has to produce death certificate of her husband/divorce paper in the branch office. The clients who cross 55 years is eligible for senior citizen. The maximum loan size is Rs.20000. The repayment will be made within one year of the date of loan disbursement.

2.5. Educational Loan:

Educational Loan is for the higher education of the client’s children.The maximum loan size of this loan is Rs.100000. The repayment is started after he/she complete his/her education. During the period only interest is to paid by the client.In order to get this loan the clients has to produce all educational documents.

3. Special Loan :

NESDO Nepal provide seven different types of loan under Special loan category.

3.1. Seasonal Loan:

Clients take this loan for seasonal business.This loan is also treated as the working capital for clients business.After the 1st loan repayment the client is eligible for seasonal loan. This loan is disbursed in second year.The minimum loan size is Rs.5000 and the maximum limit is Rs.20000 and will be repay within one year from the date of loan disbursement.

3.2. Special Member Loan:

If a clients fulfill the following requirement she is eligible for Special member loan.

• Repay the second loan.
• Never delay in repayment.
• 100% attendance in center meeting.
• Disciplined.
• Never Borrower form other clients in center meeting .
• 100% Loan utilization.
• Help in outreach expansion.

The maximum loan size is Rs. 50000 and repay within one year from the date of laon disbursement.

3.3. Committed Member Loan:

Client who doesn’t take any loan for the last three and fulfill the following requirement is eligible for Committed member.

• 100% Attendance in center meeting.
• Disciplined.
• Help in outreach expansion.
• Committed to Organization/Institution.

The maximum loan size is Rs.30000 to be repay within one year from the date of loan disbursement.

3.4. Housing Loan:

“A World where every one has a decent Place To Live” NESDO Nepal has been working for affordable housing by providing financial and technical support for poor homeless families. The objective of this loan is to provide shelter to poor homeless families with safe water and sanitation facilities. NESDO Nepal provides housing loan with lower interest rate for those who don’t have a house to live.At the same time NESDO Nepal provides technical knowledge on low cost housing.The Maximum loan size is Rs.200000 with out collateral and to be repay within 36 months from the date of  loan disbursement.So far NESDO Nepal provides housing loan and technical support to 9850 ultra-poor families.

3.5. Natural Calamity Loan:

Natural calamities are unexpected. Every year our clients affected by various natural calamities like flood, landslide, fire,earthquake. NESDO Nepal develop this loan product to address these issues of clients.This loan is specially for rehabilitation after the calamities. The Maximum loan size is Rs.200000 at a lower interest rate to be repaid within 36 months from the date of loan disbursement.

3.6. Greenery Promotion Loan:

From Its inception NESDO Nepal has been working in the field of greenery promotion. At the same time NESDO Nepal developed a flexible loan product for greenery promotion to its clients. Clients take this loan for the construction of bio-gas plant, installation of solar panel, improved cooking stove and plantation of herbal plant.The maximum loan size is Rs.100000 and will be repay within 24 months from the date of loan disbursement.

3.7. Foreign Employment Loan:

If the family member of a clients wants to go abroad for employment then the client can apply for this loan provided that then client is enroll in the program for the last one year and have a good track record of credit and saving in the center. In order to get this loan the clients has to produce the following documents.

• Copy of Passport and Citizenship Card.
• Letter from the Employer Company.
• Medical Certificate of the person going abroad.
• Visa Letter.
• Recommendation from the Center Meeting.

The maximum loan size is Rs. 200000 to be repay within 24 months from the date of loan disbursement.

Loan Composition:

Loan by Purpose: 

NESDO Nepal’s Clients receives loan for different purpose. Most of them are related to Retail business, Micro enterprise business, Agricultural activities, animal husbandry, Poultry etc. The table below shows the purpose wise loan outstanding.

Loan Disbursement, Repayment and Outstanding:

In Order to reduce poverty NESDO Nepal has been providing various types of loan to its member as per their requirement. The table below shows the growth trend of borrowers and loan outstanding during 2069-2074. Up to 15th January 2018 NESDO Nepal disbursed Rs(Rs.15116351946) 15116 million with 99.98% recovery rate.

Loan Product Details:

Note: (Rs. Denotes Nepali Rupees).