Bindhabasini Saving Fund Cooperative Society Ltd. (BISCOL)

Sources

Bindhabasini Saving Fund Cooperative Society Ltd. (BISCOL) takes its name from a god related to peace.  BISCOL is a community-based cooperative established in December 1993 and registered under the Cooperative Act. Its microfinance operations, regulated under a ‘limited banking license’ provided by the central bank, began in October 1995.

BISCOL offers two types of financial services to its members: cooperative banking services to its ‘regular’ cooperative members, and microfinance services to its ‘microfinance clients’ (low-income women).

Its products range includes: microsavings (ten products remunerated between 5 to 9%), microcredit (ten products costing between 13.5% to 15.5%), microinsurance (life, health, livestock) and training (education, business development services, skill development). Its microfinance services to poor women employ a Grameen Bank methodology, built on the strength of groups. It includes savings for education, festivals, deposits to manage surplus funds, regular deposit accounts, fixed-rate accounts and microinsurance for some clients. The group methodology takes into consideration the difficulties of serving areas with low population density and the remoteness of clients.  Within this context, the willingness of staff to meet clients is greatly appreciated by poor clients.

BISCOL operates from four offices in Khopasi, Panauti, Banepa and Dhunkarka located in Kavre district, near Kathmandu.

Under its group-based microfinance program, BISCOL officers visit groups to collect savings and disburse credit. So far, BISCOL has been able to form 36 centres, each comprising 10 to 15 groups, subdivided into smaller groups of 5 members.

* Microfinance program only.                                                                                                 As of mid January 2004

Through its microfinance services to poor women, BISCOL has extended and increased its services to low-income women. The products feature lower entrance fees (Rs.5,000 per group instead of Rs.5,000 for individual regular members) and have attracted more women to join BISCOL, making them the majority of BISCOL clients.

As of mid January 2004

BISCOL offers free ‘micro-training’ to its clients, fully subsidized by BISCOL with some of the technical components being outsourced. Training includes diverse subjects such as farming, vegetable growing, cooperative services. BISCOL plans to ask for some financial contribution from its clients, with complementary funds provided by external donors.

In 1998, BISCOL started a partnership with the National Life Insurance Company (NLIG) on the provision of a microinsurance product, with the Center for Microfinance (CMF) acting as facilitator. The pilot project includes micro-life insurance, which covers natural and accidental death cases of clients/members, their spouse and parents. The scheme is funded by a premium (5% of accumulated savings, up to Rs250) paid by clients, and a matching fund contributed by BISCOL.

The microfinance loan portfolio outstanding equals Rs.223,700, with a 100% repayment rate.

As of mid January 2004

BISCOL plans to convert into or establish a separate development bank, within one year. This will not concern the microfinance program and its clients, who will stay with the NGO. BISCOL needs to raise more capital to undertake this change. 

BISCOL has difficulties obtaining commercial lending as commercial banks request collateral. BISCOL has plans to borrow from the apex organisation, RMDC.

• BISCOL publications
• ‘A case study of four savings and credit cooperatives operating in the hills of Nepal’. Paper presented at BWTP workshop in Kathmandu by Nav Raj Simkhada, RUFIN/GTZ. February 2004.

Back to Top