In order to help the members of our community, Human and Hope wishes to start a microfinance program. It will be aimed at the most vulnerable groups in Siem Reap — those who are Poor Level One through to Five. In order to reduce our financial risk, we will also open this program to the general community. Our borrowers generally do not have what is required to borrow money from a bank, such as literacy, credit history and the willingness to take a bigger loan than is needed.
Our borrowers are from the villages surrounding Wat Chork pagoda, where we are based. This allows us to be readily available for our borrowers. The borrowers can be individuals, or a group of people.
We have a loan limit of $100 for the Poor Level One through to Five borrowers. They have one year to pay back this loan, and could use the funds for business ideas such as a bicycle repair stall, a petrol stand, a drink stand, a garden or sewing shop. The general community can borrow up to $150 dollars, however they also have one year to pay back the loan. This money could be used to set up a motorbike repair stand, a key cutting shop or a small food stand.
In order to recruit potential borrowers, we will have our two full time teachers visit the surrounding communities and promote the microfinance program and the information sessions. At the information sessions we will provide the potential borrowers with all the necessary knowledge related to the microfinance program and tips for business management. Application forms will be handed out, with potential borrowers completing it within a week. If they have issues with filling out the form, our teachers will assist them.
We will then select our successful borrowers and inform them they are able to receive a loan. The borrowers will receive one final presentation about how to use their loan effectively to establish a business/grow their existing business. The loans will then be disbursed.
The interest rate on the loan is 3% per month. This interest rate reflects the possibility of borrowers not paying back their loans. All repaid money is directed back into our microfinance program for future loans. In order to ensure loans are taken seriously, a late penalty of 25% of the weekly repayment applies.
The loan repayments are collected each Sunday by the teachers at Human and Hope Association. When the teachers visit the communities to collect the loans, they are also able to help solve any problems the borrowers may be having with their businesses.
By supporting the people in our community, we are ensuring they can help create sustainable futures not just for themselves, but for their children too.
Our goal is to raise $1,500 to start our microfinance program. If you were interested in making a donation, please contact us!