The Cambodian Community Savings Federation (CCSF) started as the Small Economic Activity Development project of CARE Cambodia, financially supported by AusAid through CARE Australia in1998. It transformed into CCSF in 2003. CCSF works in partnership with approximately 27 community owned and managed credit unions, referred to as community based microfinance institutions or CBMFIOs, which have members spread across almost 500 villages in the provinces of Battambang and Banteay Meanchey in northwest Cambodia. Each institution has many more savers than borrowers.
CCSF is registered with the Ministry of the Interior of the Royal Government of Cambodia as a local non-governmental organisation and with the National Bank of Cambodia as a rural microfinance provider. The members of CBMIFOs are mainly rice farmers although some are engaged in animal husbandry and small-scale commerce and trade as well. Around 7% of CCSF’s overall portfolio is direct lending to small and medium enterprises (SMEs) in urban areas of Battambang and Banteay Meanchey provinces. As part of the lendwithcare project, CCSF has selected several CBMIFOs that are located a few kilometres outside the city of Battambang. They are called Khum Chrey, Ek Phnom Takream, Kanteu Meanchey, Kampong Prieng and Wattanak. They are among the very first CBMIFOs that CCSF established in 1998.
What is CCSF’s mission?
Its mission is to ‘provide affordable financial and non-financial services to low-income families, especially women, to improve their standard of living’. Approximately 74% of its borrowers are women and some 95% live in rural areas.
What types of financial services does CCSF provide?
Primarily, it provides loans to CBMIFOs to on-lend to members and these are accompanied by technical assistance and advice. CCSF also lends directly to SMEs. The members of the CBMIFOs are also obliged to save each month. The minimum amount is 1,000 Riel (about $0.25) over a fixed term of 1 year and there is no maximum. Interest earned on compulsory savings is 8% per annum. The total number of borrowers as of the end of 2013 was 9,009 from a membership of 47,770 – approximately 19% of members are borrowers. CBMIFOs share any profits with their members in accordance to their share capital.
How much interest does CCSF charge?
Microfinance institutions (MFIs) charge higher rates of interest for several reasons. Firstly, the administrative costs of making many small loans are much higher than making fewer larger loans; secondly, they take more time assessing the feasibility of applications and thereby reducing risk because borrowers cannot offer traditional forms of collateral nor do they have salaried incomes; thirdly MFIs often operate in geographically remote areas with low population densities and this means that they incur greater operational costs; and fourthly they often accompany loans with a range of training and technical advice. In addition, inflation is generally higher than in countries such as the UK. The rate of inflation in Cambodia can be found below. CCSF charges CBMIFOs annual interest rates of between 18-24% on a declining balance while CBMIFOs charge their members annual interest rates of between 30-36% per annum on a declining balance.
Does CCSF provide any training?
Yes, it provides training to both CBMIFOs and borrowers on topics such as:
· Self-help action through savings
· Mutual help action through credit
· Rural household economy (financial literacy, family budgeting)
· Savings and loan policy of cooperatives
· Roles and responsibilities of members
· Roles and responsibilities of cooperative leaders
There are different modules provided to CBMIFO Board of Director members and management staff.
Where can I find out more information about CCSF?
CCSF: Basic facts and figures
|Full name:||Cambodian Community Savings Federation (CCSF)|
|Average loan size to credit union:||US$180,936|
|Average loan size of member credit union to borrower:||US$798|
|Total number of credit and savings union partners:||31|
|Number of active loans through credit and savings union partners:||8,760|
|Proportions of loans given to women:||73.0%|
|Total loan portfolio:||US$5,609,003 as of January 2014|
|Portfolio at Risk (PAR) at 30 days:||0.25%|
(This information was updated in January 2014)
Cambodia: Basic facts and figures
|Country:||Kingdom of Cambodia|
|GDP per capita (current US$):||1,094.6|
|Human Development Index ranking:||143 (of 188 countries)|
|Proportion of population living on less than $2 per day:||57.8%|
|Adult literacy rate:||77.2%|
|Under 5 Infant mortality rate (per 1000):||29|
|Life expectancy:||64.14 years|
|Currency:||Cambodian Riel and US dollar|