PRASAC Microfinance Institution

BWTP Member Profile:

PRASAC Microfinance Institution

Address:	#25, St.294/57 Boeung KengKang1 Chamkarmon
City/Country:	Phnom Penh, Cambodia
Contact Person:	Mr. Sim Senacheert General Manager
Contact Number:	(855) 16 908 508
Fax Number:	(855) 23 216 362
Email Address:	info.pp@prasac.com.kh
Website:	www.prasac.com.kh

MEMBER OVERVIEW

BACKGROUND:

PRASAC MFI was a former credit component of PRASAC project funded by the European Union and implemented by three ministries of the Royal Government of Cambodia.

The project started in 1995 to rehabilitate and support agricultural sector in six provinces around Phnom Penh i.e. Kompong Cham, Kompong Chhnang, Kompong Speu, Takeo, Prey Veng, and Svay Rieng. The PRASAC project concluded in December 2003.

To ensure the access to financial services to rural communities and micro-enterprises beyond the closure of the project in 2002, the PRASAC Project Steering Committee made on a strategic decision to transform its credit component in a licensed MFI. In March 2002, the transformation started by creating PRASAC Credit Association as credit operator registered with the National Bank of Cambodia (NBC).

In 2003, a trust fund called Cambodia Rural Development Foundation (CRDF) and PRASAC Staff Company were established to facilitate the transformation. With two initial shareholders, PRASAC MFI Ltd was established by registered with the Ministry of Commerce as private limited liability company in August 2004 and got its license from the NBC in November 2004 to legally provision financial services to rural communities and micro-enterprises.

MISSION:

To provide sustainable access to financial services for rural communities and micro-enterprises.

VISION:

To improve the living standard of the rural people contributing to sustainable economic developments by being a financially viable microfinance institution.

OUTREACH (As of YR 2009)

Number of Clients Served	8,987
Number of Active Borrowers	87,945
Male	41,598
Female	46,347
Number of Active Depositors	1,444
Male	1,120
Female	324

PRODUCTS / SERVICES

Group Loans
Loan size is up to (Equivalent) USD 1,250 (USD 250 for each member of the group). The number of members in the group varies from 2 to 5 borrowers. The purpose of this loan is to satisfy the needs of households which are engaged in daily small income generating activities.

Individual Loans
Loan size is up to (Equivalent) USD 25,000. This loan is designed for those engaged or desire to be engaged in production activities such as vegetable/crop growing and animal raising with or without other sufficient regular income generating activities, designed to enable people with regular income to buy consumable goods, enhance the life style, pay school fees, enter marriage, effecting house improvement, etc, designed to enable clients in setting up new business or expand the existing one and/or existing products will be modified or withdrawn.

Savings
Clients can open their savings account both in riel and dollar. Clients can open the first savings account with minimum amount, USD 5 or KHR 20,000.

Interest rate for Savings
Term Annual interest rate (KHR) Annual interest rate (USD)
Unlimited 2.5% p.a 2% p.a

Time deposits
There are three types of time deposits: three months, six months, and twelve months. The minimum amount is USD 25 or KHR 100,000.

Until the mid of 2005 PRASAC MFI offered only loan products in local currency. From July 2005 PRASAC MFI introduced its two first savings products, the Savings and Time Deposit. Both savings products are now available both in KHR and USD.

Interest rate for Time deposit

Term                           Annual interest rate (KHR)         Annual interest rate (USD)
Three months               3%   p.a                                 2.5% p.a
Six months                   5.5% p.a                                5%   p.a
More than 12 months     8%   p.a                                 6.5% p.a

FINANCIAL INFORMATION (As of YR 2009)

(In US$)
Average Loan Balance per Borrower	737.50
Average Savings Balance per Saver	333.28
Total Assets	70,829,615.43
Savings	481,254.00
Debt	48,958,303.17
Equity	21,871,312.26
Outstanding Loans	648,659,84.40
Gross Loan Portfolio	64,088,028.31

Capital/Asset ratio	30.9%
Debt to Equity ratio	223.8%
Deposits to Loans	0.7%
Deposits to Total Assets	0.7%
Gross Loan Portfolio to Total Assets	90.5%
Return on Assets	4.1%
Return on Equity	27.6%