Revolving Fund Resumes to Revolve after Years

Jakhanitar is a small village under Chisapani VDC in Ramechhap district of Nepal. The village can be reached after one hour drive from Manthali, the district headquarters of Ramechhap. The village is predominantly comprised of indigenous people-the Majhis. For the purpose of launching PAF program, a total of 22 households from the village were grouped into a community organization called Jhakanitar community organization in 2006. Srijansil Yuwa Samaj supported the CO in developing its proposal for income generating activities such as goat, pig rearing, running groceries and vegetable farming. Once the CO got registered under the PAF, as facilitated by the Partner Organization Srijansil Yuwa Samaj, the CO received a total of NPR 3,50,000  to mobilize as revolving fund among the member households of the CO then they distribute the amount among themselves  as a loan.


Probably due to negligence or to the lack of knowledge on the part of community members about the obligation of the members to keep the amount revolving among the members or to partner organization’s disregard to provide service to the community organization, the CO members did not pay back the loans. Years passed by, however, the members did not take an initiative to pay back the amounts they borrowed. Now, the amount they received from PAF as revolving fund could not be utilized in line with the concept of revolving fund envisaged by PAF. Two of the members of the CO did not pay the amount for six years and rest of the others who had borrowed the amount as loan did not pay for four years. However, although infrequently, the social mobilizer of the PO continued to make visits to the CO as if the CO was mobilizing the revolving fund and implementing its programmes satisfactorily. Some member households of the CO were deprived of access to the fund.


 Since FSCN launched PAF II sub-project in the CO, its Ramechhap district based DC informed about the situation and functionality of the CO to the social mobilizer of the PO. Once OCAT was applied in the CO, a lot of information was derived through it. With the realization that the CO was not functioning at all when it comes the concept of revolving fund of PAF, the DC discussed this aspect in his first coaching and counseling class in September, 2013. The DC also discussed in detail the procedure and provisions of PAF implementation guideline including the provision of their organizational statute. Such a discussion became the CO members claim, an eye opener for them. Hence, the members got positive and interested to recover and pay back the outstanding dues including 5% interest as per their statute.


Following the first round of coaching and counseling, the CO was able to collect a total of NPR 1,80,000 from 9 CO members and after the second coaching and counseling class was  taken,  additional  NPR  54,000  was  recovered  from  additional  3  CO  members.  CO members  now  started  to  express  their  views  that  if  their  SM  was  regular  to  their organization and that if they were informed of the provisions in time, they would mobilize their  funds  properly  from  the  beginning.  They  now  have  sought  help  from  the  DC  to ensure that now on their SM’s visits to the CO increases. Before the DC’s initiation to recover the amount, PO and its social mobilizer were seen pessimistic  that  the  amount  distributed  among  the  members  could  be  recovered  and mobilized. However, as the DC informed the positive development taking place in regard to  recovering  the  long  outstanding  amount.  The  PO  and  its  SM  started  to  seem  more positive and interested to fully recover the amount. They even visited the CO along with the  DC  on  11th January,  2014.  They  are  of  the  opinion  now  that  they  would  work  in coordination with the FSCN DC.


The  CO  now  has  deposited  the  recovered  amount  in  their  bank  account  and  invested among the CO members who were deprived of receiving the fund from their CO as loan.