Request for Proposal To Provide easy Access To Agriculture Loan To Small Holder Farmers

Winrock International

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Request for Proposal To Provide easy Access To Agriculture Loan To Small Holder Farmers

Knowledge-based Integrated Sustainable Agriculture in Nepal (KISAN II) Project

Request for Proposal (RFP) to provide easy access to agriculture loan to small holder farmers.

Project background

KISAN II is a seven-year, USD 37.6 million project that contributes to the Government of Nepal (GON)’s Agricultural Development Strategy (ADS). KISAN II facilitates systemic change in the agricultural sector, including: (1) greater climate-smart intensification of staple crops and diversification into higher value commodities; (2) strengthening of local market systems to support more competitive and resilient value chains and agricultural-related businesses; (3) improving the enabling environment for agricultural and market systems development; and (4) equipping selected households with the necessary business literacy skills to sustainably integrate into the market system. As part of a 24-month supplemental scope (extension), KISAN II is supporting the GON’s response to the impact of COVID-19 in agriculture and is promoting transformation in the rice and maize sub-sectors. The project will coordinate closely with the private sector and the GON’s Ministry of Agriculture and Livestock Development. KISAN II currently works in 10 districts in the Lumbini, Karnali, Sudurpaschim and Bagmati provinces (Feed the Future ZOIs 1 and II, respectively), including 8 focus districts (Kanchanpur, Kailali, Banke, Bardiya, Surkhet, Dang, Palpa and Kapilvastu) during the extension phase.

Background Information

Agriculture is a dominant sector in Nepalese economy, providing employment to 65 percent of the total population and contributing 27.5 percent to the national GDP.  Despite the opportunities, the sector continues to face numerous challenges for the commercialization of agriculture sector. Specifically, limited access to financial services for rural smallholder farmers and micro, small and medium enterprises (MSMEs) is a major constraint in the sector. As per the report of the World Bank “Nepal Systematic Country Diagnostic” (February 2018), only 9% of Nepalese small and medium sized enterprises use the banking sector while only 17% of the total Nepalese have access to banking. Moreover, these are limited to urban area and for better-off enterprises. As per the various publications of Nepal Rastra Bank, about 61% of Nepalese have access to formal and semi-formal financial services. In an effort to commercialize agriculture sector, Nepal Rastra Bank (NRB) has issued directive for class A, B and C financial institutions to allocate 5%, 4.5% and 4% respectively of their total loan portfolio to the deprived sector, which includes small and marginalized farmers. NRB has also instructed commercial banks to invest 15% (increase from 10% in the previous directive) of their loan portfolio in the agriculture sector.

In addition, GoN also introduced subsidized interest agriculture financing program in its financial policy in 2014. But as per Central Bank data (Asad 2078), only 104,109 borrowers have accessed subsidized agriculture loan. To support efforts of the Government to provide easy access to finance to farmers, KISAN II has been working with private sector partners (agro-vets, cooperative, processors) to link their farmers with formal financial institutions to facilitate access to agriculture loan. Similarly, KISAN II has also worked with commercial banks to link them with commercial farmers who are looking for loan. But despite these efforts, many farmers have not been able to easily access subsidized agriculture loan due to the lack of proper knowledge about the application process, and lengthy loan application process. At the same time, commercial banks are not actively pushing to provide small size agriculture loan due high monitoring and operational cost, and the high risk of proper utilization of loaned funds. To address this challenge, KISAN II seeks a service provider that can help to increase farmers’ access of agriculture subsidized loan and at the same time reduce the cost and risk for the commercial banks. 


KISAN II seeks to work closely with a service provider who has the incentive to support commercial farmers to access interest subsidized agriculture loan from commercial banks.

Scope of Work 

In order to achieve the objective, the scope of work will be as follows:

  1. Service provider and KISAN II will identify working areas.
  2. Service provider will orient farmers on how to access interest subsidized agriculture loan.
  3. Service provider will support selected farmers to access interest subsidized agriculture loan. 


  1. Orient at least 1500 commercial farmers on how to access interest subsidized agriculture loan. The farmers must be from any of KISAN II working districts (Kanchanpur, Kailali, Banke, Bardiya, Surkhet, Dang, Palpa and Kapilvastu). 
  2. Provide assistance to 600 commercial farmers to apply for interest subsidized agriculture loan in KISAN II ZOIs. 
  3. Provide detailed list of farmers who have received agriculture loan.

Selection Criteria and Weightage 

The Service Provider company/firm will be selected based on the following weightage value.

Technical Proposal (methodology/plan, sustainability of activities etc.)80%
Financial Proposal20%

Timeline of the activities

The timeline this SOW is estimated for 12 months of period.  

Instruction to applicants.

Subcontract TypeFixed Price Subcontract
Name of AssignmentProvide easy access to agriculture loan to small holder farmers
Submission date and address:No later than April 22, 2022USAID’s Knowledge-based Integrated Sustainable Agriculture in Nepal (KISAN) II Project Kalika Marg, Sanepa-2, Lalitpur, Nepal Phone: 01-5541961/ 5543961Submit the proposal electronically
Clarification on RFP may be requested not later than through emailApril 13, 2022
Validity of response to RFP must remain 60 days after the submission date
Response to RFP shall be in the following LanguageEnglish
CurrencyNepalese Rupees
Curriculum VitaeUpdated CVs required of core team members 
Letter of InterestRequired
Technical Proposal and Work ScheduleDetailed Technical proposal with anticipated workflow should be presented in a Gantt chart and include major tasks, milestones, and deliverables broken down by week.
Financial Cost EstimateCost estimate format attached in Annex 1. Cost estimates should be presented in MS Excel and accompanied by a brief narrative explaining the rationale and assumptions for the major cost categories.
Agency related Document/sCopy of agency registration, renewal if applicablePAN/VAT registration certificateLatest tax clearance Latest Audit report
DisclaimerIssuance of this solicitation does not obligate Winrock International to award a Contract, nor will Winrock International pay any costs associated with the preparation or submission of proposals.  Furthermore, Winrock International reserves the right to reject any and all offers, if such action is considered to be in the best interest of Winrock International.  Award of a Contract is subject to availability of funds and other internal Winrock International approvals.  This award/contract is subject to USAID approval.