VisionFund Cambodia offers micro loans to Ketsana victims

VisionFund Cambodia offers micro loans to Ketsana victims

VisionFund Cambodia, one of the country’s major microfinance institutions, has begun offering an emergency loan for families recently affected by Ketsana typhoon, as part of its social mission to help the poor liberate themselves from poverty.

“For the Express Loan, we plan to disburse about US$30,000 in Ketsana-hit provinces, particularly Kampong Thom and Siem Reap, to help victims whose property, businesses or farmland have been lost or destroyed start once again, “says VisionFund Cambodia Executive Director Bora OmSeng. 

“Some 500 affected families will benefit from the loan scheme,” he adds.

The Express Loan, with a 3 to 6 months term, requires no collateral and ranges from US$ 1 to US$250 for Ketsana-affected families to restart/ start small business or agricultural activities to increase their household income in the storm’s aftermath.  Eligibility includes clients found to have suffered Ketsana effects and be active in income generating activities/businesses.

Clients can pay back on a monthly installment basis or on a monthly interest basis with principles repaid every two months or quarterly or at the end of the term. The monthly interest rate stands at about 2.6 percent, including micro life insurance for the borrower.

“We will pay special attention and provide special support including assistance in business plan and money management for this special clientele to ensure that our loan will not add financial stress to them,” Mr. Bora emphasizes.

VisionFund Cambodia has adopted a policy of disbursing one percent of its total loan portfolio to families affected by disasters and personal incidents including drought, fire and illness. The MFI is currently serving nearly 100,000 families with outstanding loan worth some US$ 20 million in 13 provinces.