Microfinance
The Problem
Cambodia is currently one of the poorest nations in Southeast Asia and indeed the world. With limited educational opportunities and a high dropout rate at school, many Cambodians have few choices for employment. Therefore many are hard-pressed to make a living and feed their families, let alone save for the future. To add to such problems, the average Cambodian has no access to formal banking, forcing those with a need for cash to borrow from local money lenders. Such informal lenders normally charge very high interest rates, which essentially strip the borrower of any potential savings or business growth, preventing them from escaping the cycle of poverty.
What JWOC is Doing
In 2006, JWOC was conducting surveys in local villages that had received JWOC water wells to see what else was needed. The response: an overwhelming demand for basic loans. As most of the families surveyed were living at or below the poverty line, and realizing that without collateral or any access to money other than from money-lenders with very high interest rates, JWOC created a Cambodian Microfinance project. These families now have access to fair-interest loans that give them the opportunity to grow their businesses while still being able to afford their daily necessities.
As an organization aiming to have the greatest impact on peoples’ lives in the long term, JWOC seeks to accompany its programmes with education and training for all involved. JWOC holds presentations and educational information sessions for potential borrowers so that they can receive business and budget training, as well as understand what it means to be a saver versus a borrower. Thus they are able to make an informed decision to take a JWOC loan through understanding the responsibilities of being a borrower. One such responsibility is to their community – if they successfully repay their loan this allows JWOC to help more people in need. To learn more about our borrowers click here.
The JWOC scholarship students make the Microfinance program possible. The students go out weekly to collect and record loan repayments, assist with new borrower applications, provide business advice to existing borrowers and conduct surveys to measure the impact of the programme. Thus JWOC ensures that as well as providing a service in the community, it is also building local capacity and skills.
With microloans starting at $50, JWOC has been able to successfully disburse over 250 microfinance loans to the Siem Reap community. Our repayment rate was approximately 86% in 2008. We hope to continue to grow the program, and expect to have regular loan cycles every year. For more specific information about our loans please click here.
How you can help
By donating to JWOC’s Microfinance Programme you are not only supporting an individual borrower but you are also helping the wider community. As loans are repaid, JWOC is able to use the money again to help further individuals to develop their businesses. Our Microfinance programme also helps to increase knowledge and skills in finance and business in the community.
Donate towards our Microfinance programme: $100 (recommended donation).
Visit our Donate Now page to help JWOC provide loans to the local community and improve lives in Cambodia.
Meet a few of our borrowers and find out about their businesses and how JWOC is supporting them…
Find out the answers to our Microfinance programme most frequently asked questions…
Read a volunteer's experience of visiting the microfinance project...
