First Institutional Loan Partnership Launched in Battambang


Habitat for Humanity Cambodia launched its first institutional loan partnership with microfinance institution CBIRD. The partnership also includes the Development of Home Improvement Products, Provision of Technical Support to Home Partners and the provision of Institutional Technical Assistance (ITA) and Housing Support Services (HSS) in response to the needs and preferences of target communities in the Social Land Concession areas in Battambang City, Battambang Province.

HFH Cambodia has loaned CBIRD with USD50,000 in full to develop and manage Housing Microfinance products to address the housing needs of beneficiaries in Battambang, identify clients in need of housing microfinance opportunities within the project area and disburse Housing Microloans for both home improvement and core house construction.

This partnership is part of HFH Cambodia’s project in Battambang funded by World Bank, which is now on its 5th year of implementation complementing the systematic land registration (SLR) activity through strengthening civil society-government partnership for delivery of secure land tenure in urban communities in Battambang district.

As the achievement of project objectives develops such as the distribution of land certificates and the allocation of land, CBIRD has started to disburse loans to home partners for home improvement and core house construction. CBIRD will monitor on-going repayments, participate in periodic evaluations of loan products and ensure that a target repayment rate of 98% is reached. At this point, seven families from two communities have received the loan to build and renovate their houses, while the other seven families are on the application process. A designated CBIRD staff also participates in product development and attends the construction training sessions organized by HFH Cambodia.

“I can clearly see the good progress of this loan project and I am optimistic that the plan is going to work smoothly and successfully as we currently have many families to serve. Even those who are not part of the project are showing interest and want to apply for this loan program due to our reasonably affordable interest rate and a long term payment period, which is up to four years,” shared Keo Reasey Kanika, Community Organizer for HFH Cambodia in Battambabang.


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