Cooperatives assist economically disadvantaged rural groups in improving their financial situation.


While several Valley-based cooperatives have been embroiled in scandals for embezzling depositors’ funds, a number of rural cooperatives have been low-income and economically disadvantaged people with simple access to financial resources.

Koirala, a resident of Nawalparasi District’s Bardaghat Municipality, claimed financial situation has improved after she began a business with seed money from a local cooperative. “I borrowed Rs 50,000 in loans from Daunne Devi Women Multipurpose Cooperative at first, and now I have pieces of land in different sites, as well as two-story buildings,” Koirala told Republica.

According to Koirala, the cooperative has been giving needy people with no-collateral loans while simultaneously encouraging financial awareness among the area’s underprivileged.

Tikaram Lamichhane of the Nawalpur District’s Kawasoti has a similar story. Lamichhane, whose outfit business now generates roughly Rs 70,000 per month, received a loan from Nawa Triveni Cooperative after his father died when he was still a teenager. “Thanks to the cooperatives, I’ve been able to meet my financial obligations,” he stated.

Similarly, Gulab Multipurpose Cooperative in District’s Saina Maina-8 employs up to 50 small farmers with its banana farm. The Cooperative’s Chairman, Gopal Bhandari, stated that they have invested Rs 4.2 million on three bighas of land to grow bananas.

According to Bhandari, an individual member of the cooperative can borrow up to Rs 35,000 without putting up any collateral for three months to harvest cash crops and vegetables. “In addition, the cooperative buys the farmers’ produce to protect them from financial losses if they are unable to sell it,” he explained.

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