BFC in Nepal (SEDRA III)

This 30-month project aims to strengthen the capacity of partner banks (PBs) to responsibly and sustainably expand their lending activities to micro, small, and medium enterprises (MSMEs) across urban, rural, and agricultural sectors. In addition, the project supports agricultural and rural MSMEs in enhancing financial literacy, improving business management practices, and boosting productivity through the adoption of good agricultural practices.

In 2023, BFC initiated collaboration with the two SEDRA partner banks—Citizens Bank International Limited (CZBIL) and NMB Bank Limited (NMBBL)—mobilizing a team of international and local consultants to foster strong institutional partnerships and begin targeted capacity-building efforts.

The SEDRA III project aims to sustainably provide and effectively manage a targeted loan portfolio to support business investments by MSMEs in rural and semi-urban Nepal.

Its technical assistance component focuses on strengthening the capacities of key stakeholders:

Partner Financial Institutions (PFIs): Enhance their ability to deliver tailored financial services to MSMEs sustainably.
MSMEs: Equip entrepreneurs with skills for effective business planning, operations, and financial management.
Nepal Rastra Bank (NRB): Support the revolving fund’s operation and provide regulatory advisory relevant to the project.

SEDRA provided selected MSMEs with free digital marketing support, helping them use social media to grow their customer base and profits. Training focused on building practical skills in digital tools, financial management, and market engagement.

Key Achievements:

MSMEs gained confidence and skills to navigate the digital economy.
Gender-responsive training empowered entrepreneurs and addressed workplace bias.
Toolkits were developed to guide MSMEs in choosing the right digital services.
Training covered digital marketing, accounting, and inclusive business practices.
Partnerships with NMB Bank and Citizens Bank supported gender-focused training.
The “Jaankaari” platform was upgraded to better serve MSMEs with new features and content.

SEDRA continues to foster inclusive, resilient, and tech-savvy MSMEs for a stronger future.

Through SEDRA, Citizen Bank International is enhancing its ability to serve MSMEs by improving systems, risk management, and service delivery.

Key Interventions:

Credit Process Optimization: Streamlining workflows for better efficiency and risk control.
Improved Credit Scoring: Refining models for more accurate MSME lending decisions.
ESRM Integration: Aligning lending with environmental and social standards.
Alternative Credit Analysis: Piloting new methods for clients with limited credit history.
Product Enhancements: Expanding and refining MSME-focused financial products.
Loan System Upgrade: Boosting speed and transparency in loan processing.
Service Standards: Adopting best practices for sales and customer experience.

Technical assistance runs through 2026, aiming to build sustainable and scalable MSME banking systems.

Under the SEDRA project, NMB Bank is implementing key initiatives to boost MSME support, improve efficiency, and promote inclusive banking.

Key Highlights:

Credit Process & Risk Management: Streamlining workflows and strengthening risk frameworks.
Alternative Credit Methods: Piloting new ways to assess MSMEs with limited documentation.
Collateral-Free Loans: Expanding access for underserved MSMEs.
Upgraded Credit Scoring: Enhancing risk assessment tools.
Sales Enablement: Centralizing and optimizing sales strategies.
ESRM Implementation: Promoting responsible, sustainable lending.
Product & Service Enhancement: Diversifying MSME products and advisory services.
Branchless Banking Improvements: Expanding reach in rural areas.
Loan System Upgrade: Modernizing digital loan processing.
SSQS Adoption: Standardizing service quality and client experience.

Technical assistance runs through 2026, aiming to build sustainable, inclusive MSME finance.

SEDRA has continued supporting the establishment and operationalization of the Revolving Fund.

Key activities include:

In August 2024, NRB submitted the Revolving Fund Operational Manual to the Ministry of Finance (MoF) for approval. The manual remains under review.
Meetings with RBBL and NRB’s FICPD to define roles, finalize the NRB–RBBL agreement, and clarify operational procedures.
Confirmation that NRB will manage repayments and transfer funds to RBBL biannually.
Agreement to accept soft copies of application documents.
Planning of a simulation workshop post-approval.

A test version of the Fund’s portal and webpage was shared with NRB in October 2024; development is ongoing to support application and reporting functions.

At BFC, we believe that lasting success is built not only on strategic goals and high performance but also on the strength of our relationships and the vibrancy of our team culture. We understand that when people feel connected, valued, and supported, they’re empowered to do their best work and grow together.

That’s why, beyond collaboration and achieving results, we take the time to celebrate life’s moments whether it’s a birthday, a cultural festival, or a team milestone. These celebrations are more than just events; they are opportunities to pause, reflect, and appreciate the people who make our workplace exceptional. By creating these shared experiences, we cultivate joy, build trust, and strengthen connections across departments and diverse backgrounds.

Our commitment to fostering an inclusive and engaging environment allows us to bring out the best in each individual while nurturing a collective sense of belonging. At BFC, we are more than just colleagues we are a community. And through this spirit of unity and appreciation, we continue to grow, thrive, and succeed together.