Access to Credit

Tarayana’s microcredit journey began organically as communities approached the Foundation for funds to start small businesses to meet their basic needs and utilize their skills. In response to numerous requests, the Foundation launched a microcredit scheme within its community development projects. This happened prior to the Royal Monetary Authority (RMA), the Central Bank coming up with the microfinance regulations. Rural farmers and artisans used microcredit to purchase agricultural inputs and domestic animals, establish small shops, and acquire power tillers in their communities.

However, the need for these services soon outgrew the Foundation’s capacity, and to address the need, Tarayana Microfinance for Rural Development Pvt. Ltd. (TMF) License was obtained in 2018 from the Central Bank to start microfinance formally.  

TMF operates on a “business in a box” model where clients receive loans and support services like tool and machinery procurement, alignment with government services, and assistance in promoting and marketing their products.

The Foundation also fosters community financial literacy to ensure optimal use of income generated from income-generating activities. These skills enable communities to manage production costs for their crafts and other marketable goods. Group savings initiatives were introduced, aiding communities in developing lending schemes.

To learn more about TMF please visit their Official Website: Tarayana MicroFinance