Scoping of Viable Institutional Mechanism to Address SME Financing Gap in Nepal

2019-08-31 - 2019-09-30

Sakchyam has commissioned LFS to assess the feasibility of creating a special purpose, self-sustaining, for-profit institutional mechanism to provide financial services for micro, small, and medium-sized enterprises (MSMEs) in Nepal. The assessment includes an overview of the market opportunity, a mapping of the existing products and services landscape, an assessment of current market failures, the evaluation of various institutional options to address SME financing, a legal and regulatory review and recommendations on the operationalization of a to be created institution.
The activities included: Assessment of the SME lending market (including products, services and related innovation); Stakeholder interviews with both the supply & the demand side of SME financing as well as donors, the regulator and legal experts Legal & regulatory assessment for financial institutions Recommendations on setup of a Non-Bank Financial Company