Cooperatives are an important part of Nepal’s economic and social structure. They bring people together to achieve common economic goals through collective ownership, participation, and shared responsibility. From savings and credit to agriculture, dairy, consumer services, and community development, cooperatives operate in many sectors across the country.

For many Nepalis, cooperatives provide access to financial services that may otherwise be difficult to obtain. They can help individuals save money, access loans, start businesses, support agriculture, and improve household incomes.

What Is a Cooperative?

A cooperative is an organization formed by people who voluntarily come together to meet their common economic, social, or cultural needs.

Unlike a traditional business that is primarily owned by investors, a cooperative is generally member-oriented. Members contribute capital, participate in decision-making, and share the benefits and responsibilities of the organization.

The basic principles of cooperatives include:

• Voluntary and open membership
• Democratic member control
• Member economic participation
• Autonomy and independence
• Education and training
• Cooperation among cooperatives
• Concern for the community

Cooperative Sector in Nepal

Nepal’s cooperative movement has expanded significantly over the years. Cooperatives operate in urban areas as well as rural communities and provide services to people from different economic backgrounds.

They are particularly important in communities where access to conventional banking and financial services may be limited.

Cooperatives in Nepal can be broadly found in areas such as:

• Savings and credit
• Agriculture
• Dairy
• Multipurpose activities
• Consumer goods
• Women-focused enterprises
• Community development
• Small businesses

Savings and Credit Cooperatives

Savings and credit cooperatives are among the most common types of cooperatives in Nepal.

Members deposit their savings with the cooperative, and the cooperative can provide loans to eligible members according to its policies.

These loans may be used for:

• Education
• Agriculture
• Small businesses
• Housing
• Household needs
• Entrepreneurship
• Other productive activities

When properly managed, savings and credit cooperatives can help communities develop a culture of saving and provide access to finance for small entrepreneurs.