How was it founded?
About 98 percent of the residents of Nichuta do not have a bank account with a commercial bank or any form of financial institution. The absence of financial institution means that the residents have no means to take loans. The commercial banks are located in the urban centers and require a credit history. Hence, the residents have no choice, but to borrow from informal lenders. The money lenders charge 40-60 percent interest. This has trapped the residents in the vicious cycle of loans and paying interests. Similarly, the youths have a small income, but not enough to invest in their ideas. There was no incentive to save. Individually, not everyone had the resources to help the others, but together the village is stronger financially. No one was seeing this or acknowledging it. Similarly, no one talked about loans as it was a sign of weakness in the community. However, a group of 27 youths saw the strength in the community, if they came together. Hence, they organized their community and pull their resources together. their small incomes so that the community avoids taking high-interest loans and youth gets the opportunity to invest in their ideas.
We aspire to create a prosperous and financially independent society.
Providing financial literacy and access to financial services to the rural residents.
Collectivism | Dignity | Transparency | Accountability | Trust
Founded in 2014, Paurakhi Savings and Credit Cooperative Society Limited (Paurakhi SACCOS) is a microfinance institution. It operates as per the guidelines of the 1992 Cooperative Act of Nepal government.
The cooperative model that Paurakhi SACCOS follows is an alternative and distributive model of development that does not rely on foreign aid or assistance. It’s democratic governance model fosters development from within and meets the effective demand of the residents by pooling their resources locally. It is founded on the core idea that “drop by drop, one can fill a bucket.” The members of the cooperative pool their resources by saving their incomes. The pooled liquid capital provides opportunities for the members to take loans to meet their financial needs. The cooperative aims to enhance the resilience of rural residents to unknown financial risks. It provides financial literacy and access to financial services to the rural population of Paterwa-Sugauli Rural Municipality, Parsa District.
“Economic Empowerment from within”