Abstract
Labor migration to India is the most important source of income for people in Far West Nepal. To better understand the effects of labor migration, a research analyzing why and how migrants invest their money in financial self-help organizations was undertaken. Fieldwork was conducted in the communities of origin in Nepal and migrant communities in India. Based on the study, the paper provides an overview of the existing financial self-help associations, their strengths and weaknesses, accessibility and possibilities of benefits and losses for the migrants and their families. The major conclusion is that migration helps to improve income or security but can also undermine a household's financial situation by perpetuating debt and dependency.
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