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Lai is from Cambodia. She needs a loan of $1,000 to buy a machine for the production of noodles.
Lai lives in Kampong Thom, Cambodia where she is a Khmer noodle producer. On top of this business, she also raises pigs and grows rice to earn supplementary income to help provide for her family. Because she is lacking in capital to grow her business, she knows that a loan will enable her family to remain close, as her family members can work for the business. This will also allow for the family members to live together.
With the loan, Lai hopes to increase the production of noodles through acquiring another machine with higher capacity. The extra income will allow for Lai to purchase more pigs, as well as allow for her children to continue their education.
Entrepreneurs with specialized skills can apply for a loan in the manufacturing sector. Examples of businesses in the manufacturing sector are making and selling clothes, shoes, machine parts, baskets…the list goes on. These savvy entrepreneurs see the opportunity in their community and, with the help of a loan and their unique talents, can establish their niche. Only 3% of our loans are in the manufacturing sector.
In Cambodia’s Prasath Ballang district, social services, infrastructure, and markets are poorly constructed or non-existent. Home to 8,000 families, nearly 95 percent of the residents rely on farming to meet their needs. Others are engaged in crafts or small business. Food shortages occur throughout the year.
World Vision established the Prasath Ballang Area Development Program in 1994. Accomplishments include helping families establish home gardens; teaching farmers new agricultural methods; educating residents on malaria prevention; providing scholarships to students to continue their education; and constructing wells and latrines. These changes have helped the Cambodian people to begin making improvements in their lives.
To help increase household productivity and income, World Vision seeks to provide small business loans for the benefit of poor entrepreneurs. The World Vision-affiliated VisionFund Cambodia microfinance institution does things like educate entrepreneurs about microfinance, disburse loans, and manage repayments. With these loans, borrowers are empowered to expand farming, or start and expand small businesses to generate income. As borrowers earn more money, they can provide their children with nutritious food and an education.
Thank you for supporting a small business loan for Lai Khuch to expand her farming and food business where she makes Khmer noodles. While Lai initially requested a loan to expand her business making Khmer noodles, a new opportunity came up shortly after she received the loan. She instead invested her loan of $1,000 to hire more workers. Based on her knowledge of the community, she believed this was a better investment.
Lai has been repaying her loan on time with her new profits. She makes weekly payments of $12. In addition to repaying her loan, Lai is using additional income to maintain or repair equipment, purchase food for the family, and provide healthcare. Lai's child continues to study in school.
Thank you for supporting Lai and World Vision Micro!
While Lai Khuch initially invested in her business loan by purchasing to buy a machine for the production of noodles, she has struggled to repay her loan. While we continued to work with Lai to help her reestablish her business, we regret to report that Lai has now defaulted on her loan.
Lai prays that she will someday be able to restart she business so that she can better provide for her family. Lai would like to sincerely thank the donors who partnered with her. Please pray for Lai and her family during this difficult time.
Despite the fact that World Vision boasts a repayment rate greater than 98%, there will always be some loans that do not get fully repaid. While World Vision does everything it can to ensure that this does not happen, it is an unfortunate reality that must be recognized when providing loans to less fortunate populations.
Thank you for your understanding, and your support of World Vision Micro. If you have any questions or concerns, please feel free to call our Customer Care line at 1-888-511-6444.