Za Yat Kyaung Village
Only a few farmers in this village can afford to buy a tractor to expedite the planting process. Instead of using a tractor, most farmers rent bulls for $10 a day. The cost of bulls and cows is higher than other livestock costs, such as those for goats and sheep. A new loan would enable the villagers to buy bulls, which are helpful for their farms because they reduce the need for manual labor and their manures act as natural fertilizer for the soil. Additionally, after they are used for many farming seasons, these bulls can be sold for additional income. Mechanization is especially important in this village as many young people who could be hired labor have moved to urban areas in search of economic opportunities.
Pictured above are U Than, Daw Khine, U Khin, Ma Sein, and U Win. They are the committee members from the Za Yat Kyaung Village CBO. Included in the photo (second from the left) is 42-year-old Daw Khine, the mother of four children. One of her three children is still attending school. She invested her previous loan in seeds and fertilizer. With a new loan, she will buy cows to use on her farm.
More information about this loan
This loan will be facilitated through Proximity Designs network of Community Based Organizations (CBOs) in order to support rural farmers in Myanmar’s Delta and Dry Zone regions. Proximity worked closely with CBOs to provide relief services after Cyclone Nargis and to support village infrastructure projects.
CBOs also play a key role in providing access to microcredit. In this model, CBO committee members support Proximity loan officers throughout the entire loan cycle. They assist in selecting village borrowers and also act as formal representatives during loan disbursement, collection of repayments and other communications. CBO committee members appear in Kiva profiles – often alongside village borrowers – as representatives of the community.
Since families rely heavily on income from farming to support their livelihoods, these loans are structured with a single bullet repayment at the end of the loan term. The timing aligns with expected harvest season when borrowers will be able to repay. All community members who receive financing through the CBO model must repay their portion of the loan before a village will be eligible to receive new funding.
About Proximity Designs:Proximity Designs is a non-profit social enterprise that offers loan products to help small, low income farmers increase their productivity and income. There are around 12 million farmers in Myanmar who make up more than a third of the labor force. The majority of these farmers have virtually no access to formal credit institutions.
In the absence of other financing opportunities, most small farmers in Myanmar are unable to afford the equipment, material, and labor necessary to grow their crops without the help of Proximity Designs. Kiva funding will be used to help Proximity Designs expand its agricultural microfinance operation and reach more low income, rural farmers.
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About Myanmar (Burma)
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This loan has been fully funded!