Micro Credit And Saving

Micro Credit and Saving

Since 2009, when mothers groups began the micro saving and borrowing with the facilitation of the field staff to present day, it has grown into a formal registered cooperative called, UNAKO Cooperative in Dang. At the end 2014, there were a total of 500 mothers involved. UNAKO Cooperative is a direct result of the success of 18 mothers’ groups who have been operating their group’s micro-credit activities. Certainly, the UNAKO Cooperative will change lives and facilitate self-reliance rather than being trapped in the vicious cycle of poverty.

With CP Nepal’s experience over the last 6 years, UNAKO Cooperative will be a crucial tool for the financial empowerment of poor families; especially to the women and mothers of the area. Mothers groups are instrumental in the establishment of the UNAKO Cooperative for the following reasons; mothers learned how to borrow and pay back small amounts of money, thus becoming extremely responsible to their group, no mother defaulted on their loan, thus far after 5 years, mothers learned how to save money, breaking their old habit of earning and spending immediately, mothers attended literacy classes, and some mothers even started successful small businesses such as animal husbandry, vegetable farming, grocery shop, canteen and brick making. All of these resulted in successful examples, which encouraged other mothers to do the same.

CP Nepal’s vision is to help families holistically so that the daughter’s education remains sustainable. Alina and her mother Jiuni is a prime example of this vision in action. By giving Alina a scholarship, her mother, Jiuni Chaudhary, was able to enlist into the mother’s monthly group. The rest is history as the story below proves:

Jiuni recounts her story as follows. “I am from the Lokharpur mother’s group. I received a female piglet six years ago as a motivational incentive to send my daughter Alina to school. That female piglet has given birth three times until now. The pig first gave birth to 11 piglets, the second time it gave birth to 8 piglets and the third time it gave birth to 12 piglets. By selling all these piglets, I have earned a total of $ 1,263.00 (rs, 120,000). I kept one female pig to continue the process. From these earnings, I have spent rs, 20,000 for my medical treatment and rs.100, 000 to purchase two plots of land for my family, as we were previously landless. The support of my daughter Alina went further than just her classroom education.” This program has been playing a pivotal role in the achievement of our whole program in Dang. This has made many mothers’ self sustained and has taught the habit of saving. Very soon, all mothers’ members will have a Pass Book; which will show their deposits and loans. Gradually we are on the way to function like a bank and trying to make this a cooperative, which will in the end manage most of the activities like UNAKO scarves and other new ventures.

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