The microfinance programme in Jhapa focused primarily on poor and disadvantaged groups, including Scheduled Castes, Muslims, landless households, tenant farmers, and rural women. The programme was implemented in ten VDCs, namely Kechana, Pathariya, Banyani, Haldibari, Maheshpur, Prithivinagar, Pathamari, Baluwadi, Chandragadhi, and Garamani. It eventually evolved into an effective socio-economic empowerment initiative through its intensive social mobilization approach.

The programme focused on forming groups of people living below the poverty line, using the per capita income threshold of Rs. 2,500 established by the Small Farmers Development Programme of ADB. It also implemented Compulsory Group Training (CGT), followed by a verbal examination known as the Group Recognition Test (GRT). CGT and GRT laid the foundation for what is now considered modern financial literacy.

In addition, the intensive social mobilization process addressed various developmental issues, including women’s health, personal hygiene, child education, kitchen gardening, nutrition for women and children, and entrepreneurship development. These activities were conducted monthly at the microfinance centres.

Typically, a Centre (Kendra) consisted of eight groups of five women each. Monthly meetings were held to conduct regular savings and credit activities. Awareness-raising sessions were organized after the completion of these financial transactions. Until 2005, the programme had not achieved financial self-sufficiency; therefore, Plan Nepal continued to support it through technical assistance and coverage of operational losses.

The programme not only provided financial services but also offered training, organizational development support, exposure visits, and initiatives aimed at improving gender relations. A simple process of inviting male household members to the office, briefing them during loan disbursement to women clients, and encouraging their support for proper loan utilization and repayment helped reduce women’s stress related to instalment repayment. It also contributed to entrepreneurship development and improved gender relations within households.

The programme offered various savings and loan products, livestock insurance, and social protection services, including member insurance and funeral support.

DEPROSC-Nepal’s microfinance programme was distinctive in three ways:

1. It provided a two-month grace period.
2. Loan repayments were made through monthly instalments.
3. Interest was calculated using the reducing balance method, with an effective annual interest rate of 18%.