7 July 2024, Kathmandu
The 23rd anniversary of Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd. was marked by a significant event where the Governor of Nepal Rastra Bank, Maha Prasad Adhikari, highlighted the impact of agricultural loan subsidies.
Sana Kisan Bikas Laghubitta 23rd Anniversary
He assured that the subsidy amount provided on the interest rate of agricultural loans has been used appropriately, with recovery processes initiated for any misuse.
Governor Adhikari mentioned that the Ministry of Finance, following the government’s plan, has established procedures for providing interest subsidies on commercial agricultural loans to youth.
So far, 126,000 borrowers, primarily women and small farmers, have benefited from these subsidies. However, due to controversy, subsidies were not provided in 2079.
In his speech, Governor Adhikari praised the role of small farmer development, microfinance, and cooperatives in fostering entrepreneurship, job creation, and expanding financial access and literacy.
Despite recent problems in the cooperative sector, small farmer cooperatives have remained stable, contributing positively to the agricultural sector’s image.
Shivaram Prasad Koirala, Chief Executive Officer of Small Farmers Development Small Finance, underscored the organization’s pivotal role in developing youth entrepreneurship and inclusive financial access.
He noted that more than 79 percent of the loan recipients have been effectively served by Sana Kisan Microfinance, reaching 550 local levels across the country and supporting over 1.1 million families.
Currently, small farmers are benefiting from the services provided by Sana Kisan Microfinance, with a reach extending to 4.5 million people.
The anniversary event underscored the organization’s commitment to empowering small farmers and fostering economic growth through accessible financial services.
For more: Sana Kisan Bikas Laghubitta 23rd Anniversary
About SKBBL
Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd. (SKBBL), formerly known as Sana Kisan Bikas Bank Ltd., was established on July 6, 2001, under the Companies Act, 2053 (1997). Following the enactment of the Bank and Financial Institutions Act, 2073, the bank was renamed SKBBL. On July 9, 2023 (Asadh 24, 2080), SKBBL merged with RMDC Laghubitta Bittiya Sanstha Ltd., becoming a prominent wholesale lending microfinance institution headquartered in Babarmahal, Kathmandu. SKBBL’s primary objective is to improve the socio-economic conditions of landless, poor, marginalized, and vulnerable communities, as well as small-scale farmers, by providing them with access to institutional microfinance services for business and productive ventures, promoting self-employment.
With the support and trust of the government, international development financial institutions, national-level commercial banks, and the cooperative sector, SKBBL has been inspired to expand its services across the country. The organization is dedicated to enhancing the quality of life for the poor and small farmers in Nepal. SKBBL envisions becoming a leading, financially viable microfinance wholesale institution primarily owned by Small Farmer Agriculture Cooperatives Ltd. (SFACLs), committed to strengthening rural communities through partnerships with cooperative allies. Its mission is to offer quality financial services and technical support to poor, small farmers and small-medium entrepreneurs in collaboration with sustainable partner cooperatives.
SKBBL operates based on core values of accountability, transparency, adherence to laws, responsiveness, equity, inclusion, effectiveness, efficiency, value for money, participation, and sustainability. The institution’s objectives include providing wholesale financing to SFACLs and other cooperatives for low-income households and agri-businesses, monitoring and supervising partner cooperatives, and offering technical assistance for institutional strengthening. SKBBL also focuses on resource mobilization for social and community development activities, expanding microfinance services to underserved areas, and supporting partner cooperatives in promoting agricultural value chains. The institution ensures that partner organizations incorporate client protection principles and undertakes research to explore best practices in achieving Sustainable Development Goals (SDGs).