There are two basic microfinance loan products – group loan and individual loan. Group loan scheme is used for very poor clients for them to have a support group, which also functions as the pressure group for defaulters, and to develop financial discipline necessary for a sustained financial access. Individual loan scheme most often is…
Cambodia’s economy is on the upward trend for several years, and has continued to grow and attract investors. In the words of Eric Sedgwick, Asian Development Bank Country Director, “Private consumption, exports and investment, including strong and diversified foreign direct investment will all drive economic development in 2013 and 2014.” Among the top contributors to…
Photo source: http://theasiacareertimes.com/wp-content/uploads/2011/07/asean.jpg The formation of the ASEAN Economic Community (AEC) is one of the most significant issues nowadays but also the least discussed. When fully implemented in 2015, it is expected to transform the economic environment in the region. The design for the region as a single market and production base is presented in…
Adult education requires more innovative methodologies relevant to the absorptive capacity and the culture of the participants. PFTAS has developed practical materials that can be used by MFIs to introduce new financial concepts, effect change in attitude and reinforce financial discipline among its clients. One of the main materials developed by PFTAS was the flipchart. …
At present, only 24% of the total households in Cambodia have access to electric power. Those outside the main grid are using wood, kerosene and batteries as sources of energy. These energy sources claim a substantial amount on the income of an ordinary household, not to mention its effect on the environment. Promoting clean energy…
Interest rate and its determination is one of the trickiest issues in microfinance. Most people say MFIs are charging too much, and some government agencies are even putting cap on the lending rates of financial institutions. Mission drift is an increasing phenomenon as more MFIs are shifting to bigger loan sizes and catering to the…
Market research is now an indispensable tool for MFIs in enhancing their products and services. The emerging trend is now far from the previous one-size-fits-all financial products that has been the cornerstone of microfinance success for several decades. Group loans are basically reserved for first time borrowers that have yet to establish track record of…
Developing agricultural microfinance (AMF) addresses two main issues in development finance: first, to ensure that small farmers have access to credit for production expenses; and second, to address the risks involved in agricultural production. Risks is agricultural production is so high that most formal financial institution do not venture in the agricultural sector, leaving government…
The government of Cambodia is in full-swing mobilizing resources to upgrade the country’s infrastructure in support of agricultural development. Roads, ports, irrigation and other support facilities are fast-tracked to reach the target of making Cambodia one of the main rice-exporting countries in the region, in the league with neighboring Thailand and Vietnam. Resources for these…
Financial literacy is considered as one of the main tools to prevent over-indebtedness that has plagued many microfinance borrowers. A consistent and effective financial literacy program will ensure that borrowers receiving loan funds will use them for its intended purpose and will not divert it for non-productive purposes. One main concern however is the perception…
