A bank of their own, Chhuzanggang Agricultural Farmer’s Cooperative or CAFCO, has started a micro banking scheme called saving and credit unit. It was started with a seed money of Nu. 150,000 ngultrum. The scheme was started to give immediate financial support to the members without having to travel to Gelegphu.
“We started this rural banking called saving and credit unit for the members so that they can boost their agricultural production through financial help.
“It is also to discourage them from borrowing money from money lenders who charge high interest rate,” said Kinzang Dorji, Manager, CAFCO, Sarpang.
The CAFCO give three types of loans; crop loan, solely for the production, business loan for the new activities that will benefit the community, and consumer loan for personal use.
The loans are given at lower interest rate compared to the financial institutions. The Manager said this scheme would help develop the community by providing opportunities to explore. A member can get a maximum of Nu. 15,000 as loan.
“We initially contributed Nu. 300 ngultrum each for the cooperative but now it’s 500 every month. During summer, our place becomes inaccessible, so with this banking facility in place we have high hopes it will benefit all of us,” said one of the members, Tshewang Lhadon.
Another member, Kinzang, said that it would benefit them during their paddy cultivation. “It is difficult to get cash since we cannot go to the town due to swollen river, so it will solve that problem. The loan provided is at low interest so it will benefit the people a lot.”
The Co-operative said the main source of income would be from the one-stop shop where they have lot of products for sale. One of them would be the plates and cups made from dry sheaths of betel nut trees. The CAFCO is hopeful this will encourage the youth to take up new ventures.
There are 220 members right now and others willing to use the facility will have to register themselves first as a member.
