A World of Difference

Sponsors of Cambodia World Family

Microcredit Programs

This program began in 1998 with technical assistance from World Heath and Education. Now. Cambodia World Family's Micro-credit Program is modeled after the very successful Grameen Bank of Bangladesh. This program specifically targets women particularly those who have completed the CWF literacy training and job training programs. Generally speaking, when rural Cambodian men are provided with extra money from work, it almost invariably is spent on cigarettes and alcohol. But when a woman's income increases, the extra money is directed back towards family needs.

After sewing training, this woman shows off her new dress shop.

Micro-credit begins with teaching women about home financial management, budgeting, business planning and development, interest and loan repayment. The program is predicated upon the women beginning a savings account at a "village bank" that we set up. Credit loans of $20 to $50 dollars are provided at 3% interest (up to one year to pay back). Literacy is a prerequisite to this program as participants must be able to write their own "business plan" that details just how the loan will be utilized. Together with literacy, this an essential step in terms of helping people break out of the cycle of poverty.