The Nepal microfinance sector’s earthquake response

“2015 Nepal depremi” by Hilmi Hacaloğlu.
Licensed under Public Domain via Wikimedia Commons.

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>>Authored by Sabina Rogers, Communications and Relationships Manager

In a country with poverty that is already among the highest in the world, the devastating earthquake in Nepal this April caused more destruction and destitution than could have been imagined. The Nepal earthquake, estimated to have been a magnitude of 7.8 to 8.1, caused more than 8,800 deaths and 23,000 injuries. You can read all about the subsequent aftershocks that, in any other situation, would be major events in and of themselves. There is also a great deal of coverage of the toll this has taken on Nepali families and the international response. (Watch this video from The Guardian.)

Major destruction identified using satellite imagery by the crowd-source platform Tomnod. Last updated April 29th, 2015. Source: AidData at the Center for Development Policy

Major destruction identified using satellite imagery by the crowd-source platform Tomnod. Last updated April 29th, 2015.
Source: AidData at the Center for Development Policy (http://labs.aiddata.org/aiddata/nepal)

Recent data shows that it will cost over $6.6 billion and at least five years to rebuild the country, according to Nepali government officials. More than one million people may be stranded in extreme hardship for quite a long time. Local microfinance institutions have been working hard to triage their clients’ needs and thinking longer-term about the best response to this disaster.

RMDC logo-no text

RMDC made a Campaign Commitment in 2014

We have been in communication with Jyoti Chandra Ojha, CEO of the Rural Microfinance Development Centre Ltd. (RMDC), which is a wholesale lending organization in Nepal. Ojha has provided us with the information below concerning the Nepal microfinance sector’s response to the disaster.

The earthquake seriously affected 14 districts in Nepal, and microfinance clients are among the hardest hit. From preliminary information collected by RMDC and its members, here are the statistics of those affected:

  1. No. of MFIs affected: 29 (only 4 are highly affected)
  2. No. of branches of the 29 MFIs: 142
  3. Members/clients affected: 129,000
  4. Member deaths: 126
  5. Homes of members destroyed: 163
  6. Branches of MFIs damaged: 7
  7. Houses of Staff damaged: 90
  8. Staff deaths: 1
  9. Portfolio affected: Rs 2.44 billion
  10. RMDC Portfolio affected with MFIs: Rs. 1.29 billion

These details provide a snapshot of the disaster caused to Nepal’s microfinance sector by the April earthquake. On the basis of preliminary analysis, RMDC and their members are in the process of finalizing the following action plan:

Settlement of the survivors affected from the disaster

  • Providing soft loans to rebuild homes: temporary for short-term needs and then planned homes for the long-term
  • Managing the livelihoods of the affected families
  • Managing daily necessities
  • Health and education

Creating conducive economic environment

  • Devising to revive the old economic and farm activities
  • Identifying appropriate local based microenterprises
  • Skill development trainings

Financial Resource management

  • Rescheduling/ writing off of the affected farm and microenterprise loans
  • Providing new loans at lower interest rates
  • Additional Rs. 2 billion will be required to finance in the affected districts

Technical Support

  • Disaster management training
  • Workshop on rehabilitation of affected MFI branches
  • Developing new microenterprises
  • Skill development trainings

RMDC welcomes your support and assistance in carrying out this action for the disaster affected families of Nepal. Contact RMDC today:

Rural Microfinance Development Centre Ltd.
Putalisadak, Kathmandu, Nepal
P.O.Box: 20789
Tel. No.: 977-01-4268019/4268020
Fax: 977-01-4247702
Email: rmdc@wlink.com.np
http://www.rmdcnepal.com/

“Collapsed buildings in earthquake-hit Chautara, Nepal” by DFID – UK Department for International Development
Licensed under CC BY 2.0 via Wikimedia Commons.

How you can donate to the ongoing response effort

You can send individual donations to GlobalGiving’s Nepal Earthquake Relief Fund. Additionally, Save the Children has a dedicated Nepal Earthquake Relief Fund. A list of organizations accepting donations for relief efforts is available from William & Mary’s Reves Center for International Studies.

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