In order to build financial capacity in the Poipet commune and to encourage our program participants to start their independent micro-businesses, we have started a micro-loan program.
Loans of up to $500 dollars (with a loan average of $300) can be requested by program participants with the purpose of dealing with an economic or health shock, or for the need to purchase a non-luxury asset that will determinably provide long term benefits.
Our loans are interest free and repaid by reducing participants’ carpet production wages by 6% per month. For participants who are starting up a new business, we only require a payback of 50% of the total loan.
Second loans in order to further expand participants’ business are given at a 20% payback rate per month. For second loans, we request a payback of 100% of the total loan.