Mauk Loke Village
A new loan would enable borrowers to purchase farming seeds such as chickpea, sunflower, pigeon and paddy (rice). For this season, most farmers planted sesame, but the yields were lower than expected due to weather inconsistencies. In additional to selling the raw crops, farmers sell sunflower and sesame oil to other towns. Although there is no pasture for goats and sheep near the village, this community will raise pigs and cows to supplement their farming incomes. With their profits, the village is planning to construct a 500-meter deep well to supply their families with fresh water, even during drought periods.
Pictured above are the committee members from the Min Ma Kone Village CBO: U Khin, U Chit, U San, U Aung, and Daw Thi. Included in the photo is 62-year-old U Khin, who has ten family members. As he has a large family, he has to do both farming and raising livestock to support their needs. As he bought three pigs with his previous loan, he is planning to invest his new loan in paddy, chick pea and pigeon pea seeds.
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.
About Myanmar (Burma)
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