MFI Highlight: Cambodia – CREDIT

credit_files_banner.jpgCREDIT, a licensed microfinance institution in Cambodia since May 2004, has raised almost $2,000,000 on Kiva over the past 27 months. However, it hasn’t always been a MFI — the faith based organization was started in 1993 by World Relief US in Cambodia and was registered as a private limited liability company (LLC) in 2003. Today, World Relief Corporation has a 74% shareholding in the company, World Relief Canada owns 17% and World Hope International has the remaining 9% share. At the end of 2007, CREDIT had a portfolio of US$10.3 million in outstanding loans reaching 18,771 clients. There are some interesting statistics about the MFI on their Kiva profile — 91.3% of their loans are to women, with an average loan size of $737 and their repayment rate is 100%.  The average interest rate borrowers pay to CREDIT is 11%, which is half the average interest rate for all field partners on Kiva. If you ask me, that’s an impressive track record.

Vision: Economically active poor and entrepreneurs have the opportunity to develop the livelihoods and experience full and productive lives.

Mission: To provide inclusive financial services tailored to the clients’ needs through excellent services and positive relationship while maintaining organizational sustainability.

CORE Values:
Motivation – Christ’s love

Values about clients –

  • Committed to the poor and upholding their dignity
  • Belief in the God-given potential of the clients
  • Clients are business partners not beneficiaries

ankorwatsunrise.jpgI was lucky enough to visit Southeast Asia back in March and got a general feel for what everyday life was like. I can’t pin down exactly what it was, but Cambodia was definitely my favorite country I visited on the trip that included Thailand, Vietnan and Hong Kong. Whereas in places like Vietnam and Thailand, it seemed many (not all) of the locals wanted to help you only to get your money; the people in Cambodia seemed genuinely interested in helping others. Oh yea, and that temple called Angkor Wat is beautiful. I’m certainly going to make it a point to visit a CREDIT office next time I travel to Cambodia.

About Drew Meyers

Drew Meyers is a travel addict and founder of Horizon. Social entrepreneurship & microfinance advocate.
  • Thank you for the excellent blog related to microfinance and the write-up on CREDIT.

    You and your readers may be interested to know that World Hope International (WHI) is now more than a direct minority partner with World Relief in CREDIT. WHI has recently made a loan to CREDIT through its MicroCap Fund, a global loan fund for MFIs. The purpose of the MicroCap Fund is to encourage an MFI to be institutionally self-sufficient in the same way it encourages its entrepreneurial clients to be self-sufficient. MicroCap holds the same vision and core values as CREDIT with a mission of providing an additional source of capital for MFIs as they mature, preparing them to begin accessing local and international capital markets as they develop their client base.

    MicroCap Overview