Sin Ta Khar Village
The main income generating businesses in the village are farming, livestock raising, weaving, and trading. Farmers used their past loan to buy farming inputs, such as seeds and fertilizer, to boost the yields of their sesame, cotton, and groundnut crops. The new loan would help borrowers buy livestock, such as goats and cows. These animals are important because they can be used during planting and harvesting seasons, which save farmers the $10 hourly cost of renting a tractor. They also produce manure that can be used as natural fertilizer, and they can be sold at a profit of ~$50 each after many seasons of farm use.
Pictured above are the committee members from the Sin Ta Khar Village CBO: U Thaung, U Zaw, U Aung, U Tin, U Myint, and U Tin. Included in the photo (farthest to the left) is 60-year-old U Thaung, who lives with his five family members. With his past loan, he purchased high quality sesame and groundnut seeds. Given that he has a collection of 60 goats, he will use his new loan to invest in other breeds of livestock.
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!