A Case Study of SFACL Salang Dhading

Case study
Date Published: 
May 2014
Author: 
Dr. Pokharel, C. & Simkhada, N.R.
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Discussing a community-based microfinance program in Nepal

This case study analyzes the Small Farmers Co-operative Limited (SFCL) Salang, a community based microfinance program in Nepal. The SFCL Salang is a farmers’ owned, managed, and controlled cooperative. The program’s model is a departure from the traditional model, which is heavily reliant on government subsidy. SFCL Salang has used the lending and collection group formation approach, and has formed 186 groups covering about 1187 families by 2012. This represents about 95% of the families of the Village Development Committee (VDC). The case study covers following sections in detail:

  • Introduction to the SFCL and working modality of SFCL Salang;
  • Compliance to fundamental principles of co-operative by SFCL Salang;
  • Fundamentals of the organization and portfolio structure;
  • Financial services offered by the organization;
  • Reasons behind the success and failures of farmers.
Type: 
Case study
Region: 
South Asia
Country: 
Nepal