Originally published: July 1, 2008
Source: The Irrawaddy
A Rangoon-based non-government organization, Myanmar Business Executive Group (MBEG), has announced a 50-million-kyat (more than USD40,000) microfinance scheme to help victims of Cyclone Nargis in the western outskirts of Rangoon and the Irrawaddy delta. MBEG said it would offer loans to cyclone survivors who have no collateral by relying on guarantees from other people in their communities.
“We give small loans to cyclone victims so they can rebuild their houses and restart their businesses, such as food-vending stalls and other small businesses,” said May Oo Khine. “Our loans system is based on how much money they can repay. We lend between 50,000 kyat (USD42) and 200,000 kyat (USD167) depending on how badly the client’s house was damaged. Borrowers must agree to repay loans within six months,” she said.
The six-month loan incurs a fee of 1 percent per month. The daily repayment is normally between 700 kyat (58 cents) and 1,200 kyat ($1). Borrowers are granted loans on the strength of recommendations from five other persons. No collateral is required.
One borrower from MBEG, Than Than Myint, from Shwe Pauk Kan Township, said the microfinance program had given her family much-needed relief after the cyclone. “I was a boiled pea vendor. After Nargis destroyed my house, I lost all my possessions and had to borrow money,” she said, “A very small portion of my earnings covers the interest. Now I can fix my house and start work again.”
Read the complete article: Farmers, Cyclone Victims Offered Microcredit (The Irrawaddy)