Zee Pin Kan Village
Farmers must buy several inputs to ensure good yields. For example, they typically purchase different types of seeds, compost, fertilizer, and pesticides, hire labor, and lease equipment and livestock. A new loan would enable this community to buy higher-quality fertilizer, compost, and pesticides, as these products must supplement animal manure to improve soil conditions and produce better crops.
Pictured above are U Aye, U Kyi, U Aung, Kyaw, Daw Cho, Daw Win, and Daw Khin. They are CBO committee members from the village who vouch for loan applicants. Included in the photo (farthest to the left) is 42-year-old U Aye, the father of a small child. With his previous loan, he bought two goats to raise and sell back for a profit. This year, he plans to use his new loan to buy special compound fertilizer to get better-quality peanut and bean crops.
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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