Microfinance is an effective tool that can help reduce poverty and spread economic opportunity by giving poor people access to financial services such as credit, saving,training,health campaign insurance and so on.
Aarambha Chautari Laghubitta Bittiya sanstha is the leading National level micro finance of Nepal and operates in 31 districts. As Per Nepal Rastra Bank Merger policy ACLBSL is the result of merger of Chautari Laghubitta Bittiya Sanstha Limited and Aarambha Laghubitta Bittiya Sanstha Limited.Chautari Laghubitta Bittiya Sanstha Limited was established on 23rd of March, 2015 under Company Registrar Act 2063 and Licensed as "D" grade Bank by Nepal Rastra Bank on 25th of November, 2015 and operated in 16 districts of Nepal whereas.Aarambha Laghubitta Bittiya Sanstha Limited was established on 19th of April, 2014 under Company Registrar Act 2063 and Licensed as "D" grade Bank by Nepal Rastra Bank on 10th of may, 2015 and operated in 16 districts of Nepal .
Aarambha Chautari Laghubitta Bittiya sanstha distributes small loans that begin at Rs. 5000 to Rs. 300,000 (approx. $50-$3000) to poor women without collateral and upto Rs 1500000(approx. $15000 ) on collateral basis so they can start and expand simple businesses and increase their income and quality of living standard. Their micro-enterprises range from raising cows and goats in order to sell their milk, to opening a village tea stall.
ACLBSL uses the group lending model where poor women guarantee each other’s loans. Borrowers undergo financial literacy training and must pass a test before they are allowed to take out loans. Monthly meetings with borrowers follow a highly disciplined approach. Re-payment rates on our collateral-free loans are very high because of this systematic process. ACLBSL also offers micro-insurance to the poor as well as financing for other goods and services that can help them combat poverty.
ACLBSL believes that access to basic financial services can significantly augment economic opportunities for poor families and in turn help improve their lives. ACLBSL is committed to creating a distribution network across underserved sections of society in order to provide easy access to the full portfolio of microfinance products and services.
ACLBSL follows the Joint Liability Group (JLG) model. Thus it does without any bias of caste or religion. The methodology involves lending to individual women, utilizing five member groups where all the members of the groups serve as guarantors for each other.
ACLBSL approach is to provide financial services at the doorstep of its members in villages and urban colonies. This system provides convenience and saves time and cost of travel to mainstream banks and enables Company employees to provide timely service by way of disbursements and collection facility to its members.
ACLBSL’s loan sizes are designed keeping the cash flows of its members and their repayment capacity. The Daily collection facility is welcomed considering their daily cash flows, absence of proper saving mechanisms, the time and costs involved in traveling to the banks to deposit their daily savings. Initially, members are offered small loans to inculcate the habit of daily savings, credit and center discipline. Interest and loan repayments designed for ease of understanding and repayment.
In all the processes from village selection, selection of members, training of members, loan disbursal and installment collections, ACLBSL follows a well-defined, transparent process in its operations.