Debt Relieving Loan Impact- VisionFund Cambodia

VisionFund Cambodia (VFC) is a social-driven MFI in Cambodia with a global network of over 30 countries. We are a licensed pro-poor MFI evolved from a small credit program of World Vision in the 1990’s to a separate institution in 2003 as an affiliate member of VisionFund International’s (VFI) global microfinance network. As of Sept 2016, VFC has a total loan portfolio of over $141 million serving over 259,000 clients throughout Cambodia. We have also mobilized a total savings amount of over $34 million from the public servicing over 67,000 customers/ savers. VFC has operationally covered all the 25 provinces and cities in Cambodia.

VFC targets the poor regardless of their religious beliefs, gender, or ethnic background. Our clients are generally those who are excluded from traditional financial services and mainly composed of women and people living in rural areas. VFC has a wide range of loan and savings products for customers to serve them well for different purposes, such as for agriculture, trading, commerce, consumption smoothening, etc. 

What is highly noted is the impact of Debt Relieving Loan (DRL) launched last year to relieve the debts of the most vulnerable households in the rural areas. They’re deeply trapped in poverty with accumulated debts from various creditors, most of whom are actually the loan sharks, who charge a relatively high interest rate. As a result, these households became helpless and could not get out of poverty. VFC started to work with World Vision International Cambodia (WVI-C) to help this most vulnerable group, with whom we provided a DRL of a much lower interest rate to pay off their accumulated debts.