“People Call it a Bank”

Rampur, Palpa
October 5, 2008
People call it a bank in the Rampur valley. It has provided loan for different walks of life. Giriraj Panday, a farmer, is proudly accredited to the Andhakar Mukti Saving and Loan Co-operative Organization (AMSLCO), located in the Rampur VDC of Rampur Valley. He says that his life has been changed by taking loan for buying seeds and fertilizer for his vegetable farm.
AMSLCO, established in 1999 by a group of villagers has provided various services like daily saving, regular saving, piggy bank saving, business saving and fixed saving to about 5000 people in the five VDCs in the valley.
Ishwari Pokhrel, an employee of AMSLCO and founding member of it says proudly that it was only the organization running during Maoist insurgency when no banks and other economic activities were absent. The locally situated Agriculture Bank was withdrawn during the emergency but yet to be restored in the villages.
Panday added AMSLCO provides loan by easy process but the process for taking loan from Agriculture Development Bank is very difficult. The lengthy documentation process makes everyone impatience.
Farmers get loan from AMSLCO at 14% interest rate whereas other business people at 15%.
Pokhrel said they had established a grass development union and went on a study visit to neighbouring districts and were much impressed by Bijaya Bikarsh Shrot Kendra, Gaindakot. He said they had learned the saving at small scale and discussed for intiating the similar organization in their locality. Now AMSLCO has flow of Rs. 15.7 million in investment and 12 million in saving. Now 650 people are shareholders and 50000 people are getting benefit directly or indirectly.
Pokhrel added that they have planned to reach every household in the five VDCs and they will launch micro finance by November.