A Joint Venture Of

Potential Rural Municipalities/Municipalities will be selected for program implementation in the various districts. Altogether 15 new branch offices will be established in first year. Branch office will consist of 1,600 members in average. After the establishment of branch, field staff visits the Municipalities/Rural Municipalities where community people will be informed and oriented about the program. Potential members will be identified through the application of PRA. Once target members will be identified, they will form group of five people. The group will be tested through a group recognition test and it will be recognized as eligible group after the group recognition test. The group members usually meet in a fixed place where they receive & repay loan and deposit saving and makes a continued efforts to expand the outreach. There are ten loan products for which potential client can take loan according to their capacity. Member’s outreach will be increased and would also increase the size of loan portfolio in line with their loan absorption capacity. Institution will follow the strategy of gradual expansion of its outreach both vertically as well as horizontally to attain the financial viability and sustainability. According to the five years projection, the Company will adopt the following marketing strategies:

8.1. Clientele

RULBSL will focus on the poor households. Women are primary target households. The target group of the  RULBSL consist of landless, marginal landholders, tenants and other agricultural laborers. The families living below poverty line will be considered as an eligible for membership of RULBSL

The women of Nepal are significantly poorer than men and have little access to education and have less control over the resources and the economic decisions in their households. They are predominantly confined to domestic and agricultural activities and have few economic opportunities working mostly as semi-skilled and unskilled general wageworkers. So, RULBSL will target these poor women to bring them from the vicious circle of poverty.

8.2. Operational Mechanism

RULBSL has developed its business strategies by following the broad guidelines as outlined hereunder:

  • Focus on the poor households.
  • Service delivery through small groups / centres.
  • Small credit delivery to the members.
  • Promotion and mobilization of local savings.
  • Promotion of group mechanism for loan administration.
  • Treat the target population as a client instead of beneficiary.
  • Enhance the knowledge and skill of the target people.
  • Extend credit without tangible collateral security.

RULBSL will deliver the services through the different strategies based on its Memorandum of Association and Article of Association. The general meeting of the shareholders will delegate the authority to the board of directors to operate the institution in a systematic manner. The responsibilities of the board of directors are expected as hereunder:

  • Set policies to guide the institution management to achieve the set objectives of the RULBSL
  • Assume responsibility for the establishment of policies and reviewing financial statements and provision for annual audit.
  • Mobilize resource including loan capital and grant to manage financial and non -financial services.
  • Ensure institution management’s implementation of board policy.
  • Establish good relation with stakeholders/ partners.

8.3 Organizational Structure

RULBSL’s organization consists of a  Board of Director at the top to provide policy direction and guidance to the management for the effective operation of the programs and projects.  The Executive Director, who is the executive head of the organization and is responsible for the day-to-day management and smooth implementation of the projects and programs, heads management.  There are five department namely, Internal Audit, Branch Operation, HR and Training, Finance & Account and ICT.

At the field level, there will be the branches headed by the officers as branch manager. Branch staff will include field officers and office assistant. The projected human resource structure in the branch level is shown in Table here below.