Bant Bway (North) Village
This new loan will help borrowers hire labor for the planting and harvesting seasons and purchase high quality farming inputs such as topsoil and fertilizer, which will boost crop yields. This boost in crop yields will lead to an increase in crop sales, and this additional income will be invested in a tractor, which will cost about $2,400. As farmers cannot currently afford their own tractor, most of the farmers have to lease a machine for $12 a day, plus diesel fees. Mechanization is especially important in this village, as many young people who would be hired as day laborers are migrated to urban centers in search of economic opportunities.
Pictured above are the committee members from the village CBO: U Win, U Htay, U Thein, U Aung, U Shwe, and U Zaw. Included in the photo (second from the left) is U Htay, who is 52 years old and has seven family members, including three small children who attend primary school in the village. He aspires to use his loan to buy fertilizer and topsoil to enrich his sesame 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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Success!! The loan was 100% repaid