Hpa Lan Pin Village
The new loan will enable this community to purchase fertilizer, compost, and topsoil to improve soil conditions and increase the production and quality of crops. Farmers mainly cultivate sesame, groundnuts, millet and pigeon pea. With extra income from crop sales, they usually buy goats to raise at home. Some people want to increase their incomes by opening a small grocery store in the village, working on construction sites, or tapping toddy-palm trees for sugar. Additionally, the CBO committee members are planning to purchase a small truck for the village's common use in order to solve transportation problems in getting harvested crops to markets.
Pictured above are the committee members from the CBO village: U Khin, Daw Win, U Win, U Myo, and U Aung. Included in the photo (third from the right) is U Win, who is 38 years old and married. His main income is farming, but he also works as a broker in off seasons. He has five family members, and three of them are still students. Two students are attending middle school in the village. He used his past loan for farming inputs and will use his next loan to buy pigs.
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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