PRATIQUES - Microfinance

Name of the Organization :             CHAMROEUN

Logo 

Photo of the team:

Country of intervention : Cambodia    

City(s) : Phnom Penh                                      

Date of start-up of activities (month/year): 03/2006

Date of institutional formation / constitution (month/year): Not yet

Juridical status : International NGO (EdM)

Address :

#25, street 410, first floor

Boeung Trabek

PO Box 1113

Phnom Penh

Tel. : + 855(0)23 726 329 or + 855(0)92 202 809

Fax :

E-mail : Cet e-mail est protégé contre les robots collecteurs de mails, votre navigateur doit accepter le Javascript pour le voir

Internet Website : http://www.entrepreneursdumonde.org/blog/chamroeun/index.html

Manager (director) : Grégoire Héaulme

Key figures:

Number and nature of the programs¹ / activities :

- Microfinance (savings, loans)

- Micro insurance

- Trainings

- Social orientation

Teams and number of field workers : 24

Teams in HO : 9

Total provisional budget 2008 : 207,492 $

Total number of direct beneficiaries per year :

2307 from Nov 06 to October 07

Sources of private and public subventions :

French Ministry of Foreign Affairs

Caisse Nationale de Prévoyance

Don Boule de Neige

Fondation Michelham

Historical of the creation :

Entrepreneurs du Monde decided to launch a program in Cambodia oriented toward very poor people in Phnom Penh. The main motivations were that this population hardly had access to other financial services than the one proposed by money lenders and that savings habits (other than risky traditional schemes) were almost inexistent. EdM also believes that for a better impact, financial services for very poor must be part of a more integrated approach and accompanied by trainings and social services.

Chamroeun program started end of 2005. Three first branches were opened in March,
May and October 06 and three others were opened in March, June and November 2007. In April 2007, a year after the beginning of operations, Chamroeun started proposing trainings and social services in addition to its Financial Services.

Objective/mission :

Objectives:

• Provide some financial services through a network of 8 branches located in Phnom Penh's most depressed areas,
• Improve people's capabilities through practical and management trainings,
• Train and advise the community leaders in order for them to be steadily involved in the management of their branches.

Mission:

Accompanying families in urban depressed areas to face unexpected expenses, to develop long term projects and increase their incomes through offering saving, loan and micro insurance services. Helping people running small economic activities to improve their business skills and self-confidence through providing trainings and business follow up. Supporting them and their relatives on social matters through referral to other organizations.

Action's principles :

• Chamroeun tends to reach the poorest in the community; those who do not have access to other banking services and who are out of target for main MFIs.
• Proximity between branches and beneficiaries is very important (to develop confidence and understanding between beneficiaries and branch staffs).
• Strong promotion of saving.
• For a better impact, financial services must be accompanied by training and social services.
• Participation of beneficiaries in Chamroeun's management (election of community leaders in loan committee, audit committee and branch management committee).

Programs[1] :

Microfinance (front office):

• Voluntary "passbook" savings. Easy access for all (no opening or processing fees, attractive interests rates based on the amount saved and transactions (even very small amount) allowed at anytime during opening hours).

      31/10/07: 2581 accounts, 6$ per account in average.

• Compulsory saving during loan repayment (all types of loans). 15% of loan principal. No interest paid on compulsory saving.
• 3 types of loans:

- Chamroeun Loans: Average 61$ for first cycle. No collateral but co-maker. Monthly interest rates: 4% declining, weekly or monthly repayments (average 16 weeks).

- Business loans: Average 67$ for first cycle. No collateral but witness and preliminary saving (4 weeks in a row, total saving = 15% of loan requested). Monthly interest rates: 3.5% declining, weekly or monthly repayments (average 16 weeks).

- Entrepreneurs loans: (limited to 20% of the portfolio) Average 168$. Collateral (motorbikes...) and witness. Monthly interest rates: 3% declining, weekly or monthly repayments (average 24 weeks).

      31/10/07: 1781 on-going loans (84 500$). Outreach: 2307. PAR (30 days): 0.9%.

Micro insurance:

Chamroeun promotes and distributes to its beneficiaries GRET's Sky health insurance product. In exchange of a monthly payment (3$ for a family of 2 to 4 members), beneficiaries have free access to the Municipal Hospital of Phnom Penh's services and pharmacy.

31/10/07: 199 people insured in 52 families

Trainings:

Two kind of trainings are proposed:

- Business trainings. Four modules of 1 hour on small business management basic concepts. Free for all partners.

31/10/07: 1088 participants from April to October 2007

- Skills trainings. Two topics: cooking and manicure. Each session lasts 2 hours. Partners pay 0,5$ to participate to the training costs.

31/10/07: 86 participants from June to October 2007

Social orientation and social trainings:

A social worker stays half a day every week in all branches. Partners can meet him to discuss about social difficulties they might face. The Social Worker tries to inform, counsel the families according to their difficulties. If necessary and if possible he refers the family to a relevant organization with which he previously has negotiated a partnership.

31/10/07: 137 people counseled from June to October 2007 and 17 people referred

The Social Worker also conducts social trainings in the branches.

31/10/07: 741 participants from June to October 2007

Target groups and beneficiaries :

The main target group is small market vendors of Phnom Penh. By extension it is all the poor people running a very small economic activity in the branches areas or whishing to create their business.

On the 31/10/06, all in all, Chamroeun reached 2618 people.

Operational Partners :

Sovann Phoum:

SP is a local NGO providing microfinance services in re-localization areas around Phnom Penh. Chamroeun provides technical assistance to improve SP professionalism.

GRET:

Chamroeun distributes GRET's micro insurance services.

Financing / Budget :