PRASAC MFI Ltd. is the largest licensed microfinance Institution in Cambodia, providing financial services such as credit and savings to rural and urban people in 16 provinces. PRASAC serves more than 87,274 clients with a loan portfolio of Khmer Riel 178.8 billion, as at 30 June 2008. To better help our clients, we have 87 office networks and 884 staff.
Since 1995, PRASAC MFI has offered loan products to individuals, groups, and village banks.
The target clientele for individual business loans are micro entrepreneurs operating their business in the rural economy. Clients can borrow between KHR 30,000 (75USD) and 40,000,000 (10,000USD) with loan periods of 4-36 months. PRASAC does require that their loans be secured with physical collateral, but this allows their interest rates to remain very low.
The target clientele for character-based group lending are rural people, particularly poor villagers who lack access to formal financial services and need capital for income generating activities. A group loan delivery mechanism is used in which villagers organize themselves into solidarity groups of between 2 and 5 members from different households. The clients can borrow from KHR 50,000 (15USD) to KHR 1,000,000 (250USD) for a 4-12 month loan period.
PRASAC's clients are village households located in rural areas where bad roads and absence of facilities and utilities prevail. The majority of the clients are involved in rice production and farming as well as micro-enterprises. PRASAC is also targeting to Micro-enterprises produce predominantly to the market place. The large majority of them are sole proprietorships where family members help out in the running of the business. They are mainly located in market centers that are located in or nearby district, provincial centre, and few in the villages. They have few employees and they are normally family members.
In 2008, PRASAC served more than 87,274 clients, who are mostly living in the rural areas in 16 provinces, 119 districts, 1101 communes, and 6,780 villages, with a loan portfolio of 178.8 billion Khmer Riel. 60% of the portfolio is dedicated to agri-business such as rice production, vegetable farming, and poultry and livestock enterprises. The rest of the portfolio was used for trading, services, transports, and so on. To serve these clients, PRASC has 87 office networks and 884 staff.
Mr. Ouk Virak, 35, and his wife with four children live in Trapaing Storng village, in the Takeo Province. Virak has taken out many loans from PRASAC, and has used them to slowly expand his business of raising piglets, as well as pursue other productive ventures. Full Story