Tet Wun (South)
The new loan will help these borrowers raise livestock, which is the secondary income source after farming crops such as millet and green gram. Villagers would like to use this loan to buy pigs and goats. Some people who have chicken farms can also invest their loan to expand their business, as the upfront costs are very high. There are other income generating businesses in the village, such as tapping toddy palm, selling groceries, tailoring at home, and seeking formal employment in urban centers.
Pictured above are the committee members from the Tat Won (S) CBO: U Aye, U Khine, U Zaw, U Aung, and Daw Mya. Included in the photo is U Khine, who is a thirty-two-year-old farmer. With his new loan, he will purchase crop seeds such as sesame and groundnuts. As he is also planning to start a chicken farm, part of his loan will be used to buy chicken feed, which sells for about $40 a bag.
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