DanChurchAid

Dansk version

Tip a friend Print Enlarge text Minimize text

Cambodia

Poultry farmer with micro loan

20/05/2008: A flock of chickens and a hen house. This is what the 40-year-old Chanthon from Cambodia’s Battambang province got for the DKK 150 which she borrowed in December from a local lending group established by LWF Cambodia with support from DanChurchAid

She pays a monthly interest of three per cent. It may seem a lot, but Chanthon is, nevertheless, very happy for her micro loan, as it has made it possible for her to start her own little business which will hopefully very soon give her a fixed income.

Cambodian chickens, Kompong Speu-province

Until she can sell the chickens and eggs on the local market, Chanthon pays the weekly rate of approximately 0.5 USD, by offering her working capacity to farmers in the area who need a helping hand during harvest.

A mother of six

Chanthon is the mother of six children and lives with her husband in the north-western corner of Cambodia, closed to the border of Thailand. The couple moved to the area in 1998, after the local Khmer Rouge soldiers and the Cambodian Government had concluded peace.

Before Chanthon was allowed to receive her micro credit loan, she had to develop a ”business plan”, which clearly described how she would use the loan and how she would make sure that the entire loan was paid back within six months. Furthermore, Chanthon had to demonstrate that she was capable of saving up.

Saved up 5 cents a week

Chanthon says that “she hopes that the standard of living for her and her family will improve in future and that she will work hard to accomplish this.”

For six weeks Chanthon thus paid what corresponds to 5 cents a week to the loan group before she actually got the loan. It was the first time in Chanthon’s life that she saved up money. Even though she has now got the loan, Chanthon has continued saving approx. DKK 0.25 a week.

When the first loan has been paid back in May, Chanthon hopes, that she may get yet another loan. With the new loan she plans on buying a couple of piglets and start piglet breeding next to the poultry farming.

Facts on Microcredit
The Lutheran World Federation, LWF Cambodia , only lends money to the poorest families, as it is often impossible for these families to provide the security demanded by the local banks or gougers. It is a demand that all borrowers prepare a business plan to be approved by the local loan group. In addition they are all trained in basic bookkeeping and receive technical training aimed at the individual activities mentioned in the business plan. All loans must be paid back within six months, and during the entire period of the loan a monthly interest of three per cent must be paid. Since LWF Cambodia in 2007 established the loan group, the local gougers have also lowered their interest from approx. eight per cent a month to the current four per cent.

Facts on Microcredit

The Lutheran World Federation, LWF Cambodia , only lends money to the poorest families, as it is often impossible for these families to provide the security demanded by the local banks or gougers.

It is a demand that all borrowers prepare a business plan to be approved by the local loan group. In addition they are all trained in basic bookkeeping and receive technical training aimed at the individual activities mentioned in the business plan.

All loans must be paid back within six months, and during the entire period of the loan a monthly interest of three per cent must be paid. Since LWF Cambodia in 2007 established the loan group, the local gougers have also lowered their interest from approx. eight per cent a month to the current four per cent.

By Jonas Nøddekær, country coordinator for Asia

Articles about Sustainable development