Tet Wun (North)
This new loan will help the community purchase a small tractor, which costs about $7,000. In addition to expediting the planting and harvesting processes, owning a tractor will reduce villagers' current expenses, such as renting tractors from nearby villagers, leasing bulls from neighbors, and buying animal feed for these animals. Some parts of the loan will be used to raise livestock, such as goats or pigs, which provide natural manures to replace expensive chemical fertilizers and can be resold for a profit. In the future, villagers also want to set up an ice machine and drink business to generate extra income for their families.
Pictured above are the committee members from the Tat Won (North) village CBO: U Tun, U Hla, U Tin, U Aung, and Daw Aye. Included in the photo (third from the left) is U Tun, who is a 36-year-old father of one child. His new loan will help him raise livestock. Sometimes, he also works as a mechanic and sells livestock feed to other villages. With his additional income, he wants to purchase a handset phone, which will help him speak with his customers and monitor market prices.
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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This loan has been fully funded!