Rural Microfinance Development Centre (RMDC), an organization located in Nepal that lends on a wholesale basis to microfinance institutions (MFIs) and institutions that support MFIs, is offering seed funding to MFIs to work in the remote districts of Nepal. The Chief Executive Officer of RMDC, Shankar Man Shrestha, explains, “Since microfinance institutions have not been interested to go to the remote hilly districts due to high cost of fund[s], we are providing them low-cost fund[s] to go to the remote poors [1].” RMDC is offering seed funding of NPR 1 million, equivalent to USD 13,800 per microfinance institution (MFI) at an annual rate of two percent [1].
By: Alexandra Pattee, Research Associate
About Rural Microfinance Development Center Limited (RMDC): Rural Microfinance Development Center Limited (RMDC) is a wholesale lending organization located in Nepal that lends to microfinance institutions (MFIs) and institutions that support MFIs. In addition, RMDC imparts training and support to borrowers and supports the institution-building efforts of microfinance institutions (MFIs). Its promoters and shareholders include 13 commercial banks; five regional rural development banks; the Deposit Insurance and Credit Guarantee Corporation of Nepal; Nirdhan Utthan Bank Limited, a microfinance bank; and the Nepal Rastra Bank (NRB), the Nepalese central bank. RMDC was founded in 1998 as a public limited company. As of July 16, 2010, RMDC has NPR 5.57 billion (USD 77 million) allocated to 86 MFI investments, NPR 4.52 billion (USD 62.48 million) in disbursed loans and NPR 1.92 billion (USD 26.5 million) in outstanding loans. RMDC reports return on assets (ROA) of 3 percent as of July 16, 2010. RMDC has set a goal of reaching over 1.5 million families in 75 districts with microfinance services through its 150 partner organizations by the end of 2015.
Sources and Resources:
[1] The Himalayan Times, March 7, 2011, “RMDC offers low rates to help expand micro credit”http://www.thehimalayantimes.com/fullNews.php?headline=RMDC+offers+low+rates+to+help+expand+micro+credit&NewsID=279107
MicroCapital.org Article, February 1, 2010, “KNOW A MICROFINANCE ORGANIZATION: Rural Microfinance Development Center Ltd. (RMDC)”https://www.microcapital.org/know-a-microfinance-organization-rural-microfinance-development-center-ltd-rmdc/
MicroCapital.org Article, June 24, 2010, “Asian Development Bank Pledges $72m in Assistance to Nepal to Expand Microfinance to Rural Areas”https://www.microcapital.org/microcapital-brief-asian-development-bank-pledges-72m-in-assistance-to-nepal-to-expand-microfinance-to-rural-areas/
MicroCapital’s Microfinance Universe: Rural Microfinance Development Center Ltd. (RMDC), https://www.microcapital.org/microfinanceuniverse/tiki-index.phppage=Rural+Microfinance+Development+Center+Ltd.+%28RMDC%29
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