Social Issue

In Cambodia, the microfinance sector originates from the development programmes of various NGOs. These programmes were established in the 1990s at the end of the civil war, with the aim of promoting economic development in the country. The sector grew very rapidly, fostering a trend of aggressive practices and over-indebtedness in recent years.

Our Response

In this context, it is important to support the good practice of a responsible microfinance institution, focused on helping women, rural communities, and the most disadvantaged.

LOLC’s objective is to support rural communities, where 90% of its clients live, and where access to financial services is very limited. On average, the amount of their loans is lower than that of the sector, proof of their commitment to protecting the poorest communities.

LOLC was created in 1994 as a programme of the American NGO Catholic Relief Services, originally named Thaneakea Phum Cambodia (TPC). Its social focus is to support entrepreneurs and families belonging to the base of the socioeconomic pyramid through the offer of financial services.

The Netri Foundation granted a first loan to the entity in 2013, and this one is the third.

Expected Social Impact

With this investment of the Netri Foundation, it is estimated that LOLC will be able to provide 400 microloans with the idea of empowering rural communities in Cambodia.