pipeline · Climate
SLGP SBL RSF
Project outcomes Stakeholder effects Increased access to finance for MSMEs: The MSME finance gap in Nepal is estimated at US$6 billion, which represents approximately 14% of the GDP with roughly 55% of MSMEs being constrained by lack of access to finance. Access to finance for MSMEs is constrained by lack of information, high reliance by banks on collateral, bank business models that are not suited to meeting the needs of MSMEs, with only a few banks having dedicated MSME financing units. IFC anticipates that the Project will contribute to increased access to finance for MSMEs, including women-owned businesses and climate MSMEs in Nepal and help narrow the MSME finance gap in the country. Contribution to market creation - Competitiveness: IFC expects that the Project will promote the competitiveness of the MSME finance market in Nepal. IFC anticipates through systematic interventions focused on provision of a risk mitigation tool in Nepal will demonstrate the effectiveness of RSFs in mitigating the credit risk of MSMEs and build a business case for MSME lending spurring competitiveness in the MSME financing market.
Overview
About this project
Project outcomes Stakeholder effects Increased access to finance for MSMEs: The MSME finance gap in Nepal is estimated at US$6 billion, which represents approximately 14% of the GDP with roughly 55% of MSMEs being constrained by lack of access to finance. Access to finance for MSMEs is constrained by lack of information, high reliance by banks on collateral, bank business models that are not suited to meeting the needs of MSMEs, with only a few banks having dedicated MSME financing units. IFC anticipates that the Project will contribute to increased access to finance for MSMEs, including women-owned businesses and climate MSMEs in Nepal and help narrow the MSME finance gap in the country. Contribution to market creation - Competitiveness: IFC expects that the Project will promote the competitiveness of the MSME finance market in Nepal. IFC anticipates through systematic interventions focused on provision of a risk mitigation tool in Nepal will demonstrate the effectiveness of RSFs in mitigating the credit risk of MSMEs and build a business case for MSME lending spurring competitiveness in the MSME financing market.
Progress
0%- Plan
- Implementation
- Outcomes
Alignment