Kathmandu: Nine local governments from Karnali, Sudurpashchim and Bagmati provinces joined hands with the Deposit and Credit Guarantee Fund (DCGF) to launch a new Individual Agriculture Credit Guarantee Scheme a separate with a Ring-fenced Guarantee Fund, opening new pathways to finance for smallholder farmers, cooperatives and agri-entrepreneurs in some of Nepal’s most underserved communities on July 5.
UNDP Nepal’s Deputy Resident Representative and Officer-in-Charge, Julien Chevillard spoke at the event stating “ Inclusive finance is essential to transform Nepal’s Food systems and ensure that no community is left behind. Through this innovative partnership, we are helping unlock investment for smallholder farmers, women-led enterprises and rural entrepreneurs who are central to building resilient local economies.”
Likewise, Deposit and Credit Guarantee Fund, Nepal CEO Mr. Dila Ram Giri emphasized that this Individual Agri CGS is designed to address the challenges of access, utilization and repayment of loans in agricultural sector through the engagement of local governments, partner banks, DCGF and UN.
Through the UN Joint Programme on Innovative Financial Solutions for Local Food Systems Transformation in Nepal, implemented by UNDP in collaboration with FAONepal, WFP Nepal and UNCDF, this initiative is helping reduce lending risks for financial institutions while expanding opportunities for those who have traditionally struggled to access formal credit.
By investing in farmers and local entrepreneurs, we are investing in more resilient food systems and stronger local economies, CEO Giri stated.
