Myay Ma Hla Village
The new loan will help this village purchase a tractor that will help with the planting and harvesting of crops such as sesame and beans. Nowadays, villagers are struggling to pay to lease a tractor from a neighboring village. It costs each farmer about $10 per day, not including the diesel fees that they must pay to operate the tractor. One gallon of diesel is $5. During harvest, villagers have to pay even more than $10 per day because of the spike in demand. In addition to farming, villagers cultivate Thanatkhar trees, which is used as a traditional beauty product by Burmese women, and raise livestock. They also have a long-term plan to cultivate limonia trees for timber and sap.
Pictured above are the committee members from the village CBO: U Win, U Aung, U Kyaw, U Sein , U Kyi, and U Yin. Included in the photo (third from the right) is U Sein, the father of two children. As there is only a primary school in the village, his children have to go to secondary school in a nearby village. He needs additional capital to purchase farming inputs so that his crop income can support his children's education expenses.
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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Success!! The loan was 100% repaid