(Urban-Poor & Slum Communities)
“Helping women move from survival to stability — and from stability to empowerment.”
Across urban-poor and slum settlements in Sunsari and Kathmandu, more than 150 women are actively engaged in organized groups supported by Peace Himalaya. These women, many of whom survive on daily wage labour, face persistent challenges including poverty, limited education, discrimination, and gender-based vulnerability.
Yet, when women are organized and supported, transformation begins — not only for themselves, but for their children and entire communities.
Two Women’s Groups, One Shared Vision
There are currently two active women’s groups:
- One based in a slum settlement in Sunsari
- One operating in Kathmandu
Together, these groups include over 150 women members who have collectively mobilized and managed more than NPR 4 million in microcredit transactions so far.
This demonstrates strong financial discipline, trust-based systems, and growing leadership capacity among women who previously had little or no access to formal financial services.
One of the groups, currently known as the “Dipendra Inclusive Women Group,” is in the process of formal government registration — a procedure that involves lengthy administrative steps but will further strengthen its legal standing and sustainability.
Microcredit & Revolving Fund Mechanism
A central pillar of the women’s empowerment initiative is the revolving fund system. This fund is designed not as a one-time grant, but as a sustainable financial mechanism that continuously supports women-led enterprises. Instead of providing short-term relief, the revolving fund creates a cycle of opportunity that benefits multiple members over time.
Under this system, a selected woman entrepreneur receives seed capital to start or expand a small business. As her business begins generating income, she repays the fund within an agreed timeframe, including interest. Once repaid, the same fund is reinvested in another woman’s enterprise. In this way, a single pool of resources continues to circulate within the group, multiplying its impact and expanding economic opportunities.
The revolving fund is especially important because many women in urban-poor and slum communities lack access to formal banking services or collateral-based loans. By providing accessible capital through a collective and transparent decision-making process, the fund promotes financial discipline, accountability, and mutual trust. It reduces dependency on external aid and strengthens long-term sustainability.
Rather than being used for short-term consumption, the revolving fund functions as an investment in women’s entrepreneurship, leadership, and economic independence — creating lasting stability for families and stronger foundations for community development.
How the Revolving Fund Is Allocated
The revolving fund follows a transparent and participatory decision-making process:
- When a fund cycle is announced, interested women submit their business proposals.
- The group collectively reviews and discusses each proposal.
- Decisions are made through consensus, based on feasibility and sustainability.
- The selected entrepreneur receives the fund for an agreed period.
Collective consent is considered essential to prevent conflict and ensure accountability.
The fund must be repaid with interest within the agreed timeframe, after which it is reinvested into another women-led enterprise — creating a continuous cycle of opportunity.
Current Enterprise: Women-Run Meat & Vegetable Shop
Currently, part of the revolving fund has been invested in a meat and vegetable shop run by women. The business is expected to return the fund within six months with interest, after which it will support another entrepreneur.
The long-term vision is to create multiple revolving funds across both groups, expanding the number of women who can launch or strengthen income-generating activities.
Integration with Education: Supporting Dipendra School
The women’s empowerment programme is closely integrated with our education initiative.
Two women members have been entrusted with producing uniforms for children of Dipendra School. With support from the project — including materials and wages — they have started or upgraded their tailoring businesses.
Within just one and a half months, apart from their regular services:
- They produced 39 school uniforms
- Earned NPR 35,000 jointly as additional income
- Voluntarily contributed NPR 100 per uniform back to the Women’s Group for collective benefit
Importantly, the cost per uniform remains lower than the current market price, making the initiative both economically efficient and socially empowering.
This creates a self-reinforcing system:
- Women earn income
- The group fund grows
- Children receive affordable uniforms
- The education programme strengthens
Beyond Income: Social & Leadership Empowerment
Economic activity alone does not create empowerment. Through awareness sessions and leadership workshops, women also gain:
- Knowledge of legal rights
- Financial literacy
- Confidence in public speaking
- Participation in community decision-making
- Greater control over household decisions
Women who once struggled for daily survival are now managing loans, evaluating business proposals, leading group discussions, and influencing community development.
Looking Ahead
Peace Himalaya envisions a future where:
- Organized women’s groups operate sustainably in both Sunsari and Kathmandu
- Microcredit systems continue to expand beyond NPR 4 million
- More women launch successful enterprises
- Children benefit from stable households and continued education
- Women become recognized leaders within their communities
From survival to stability — and from stability to empowerment — this journey is already transforming lives.
When women organize, they build economic strength.
When women gain confidence, families gain security.
And when families gain security, communities move forward together.