Empowering Rural Livelihoods: The Impact of Micro Finance on Farmers in Bhutan

Namgay is from the small town of Tashicholing in Tsirang, Bhutan. He is the head of the family and a farmer, and like many others he had always resorted to labor intensive farming methods. Amidst a backdrop of gradual modernization, particularly marked by the widespread adoption of power tillers, Namgay also aspired to make his family’s agricultural endeavors more efficient and cost effective.

Initially, confronted with the unfamiliarity of operating a power tiller and constrained by financial limitations, Namgay resorted to renting one from a neighbor. However, the accumulating costs ranged from Nu. 2500 to Nu. 3000 per day. Namgay said that after investing months in learning power tiller usage, he decided to take the leap and purchase one for his family. The only hurdle was his savings, which fell short of the required amount. However, he met Tarayana’s Field Officer Namgay, who served as a guide through the process of securing a loan from Tarayana Micro Finance.

Namgay said, “With my new power tiller, I not only speed up the plowing process but also began renting it out to others, earning Nu. 3000 per day after covering fuel costs. I used the rental income to repay my loan. While the repayment journey was smooth, my only worries were the occasional maintenance issues and the availability of spare parts. A bit of training in the field would have been great.”

The story of Namgay stands as a testament to the opportunities that micro Finance can unlock, empowering individuals to navigate the complexities of modernization and enhance their livelihoods.