PRASAC, the largest financial institution in Cambodia, has participated in the ‘SME Co-Financing Scheme Phase 2 (SCFS2)’, aimed at providing affordable interest loans to support small and medium enterprises (SMEs) in the country, after the first iteration of the scheme achieved positive results.
This scheme is initiated by the Royal Government of Cambodia by collaborating with participating financial institutions including PRASAC to contribute to the economy recovery strategy to facilitating SMEs in need of financial access.
The SCFS2 aims at providing affordable financing with favorable conditions to promote the development of SMEs in priority sectors namely industry, services and trade to minimize imports, fulfill the domestic demands, and to serve as an input to the production of the large enterprise.
This loan scheme will enable PRASAC to provide loans to small and medium enterprises with the capital expenditure (investment) up to KHR 2.10 billion or USD 500,000 and with working capital up to KHR 1.26 billion or USD 300,000 for their businesses with a loan tenor up to 7 years without admin fee. Interest rates on loans to SMEs under this scheme are structured in 2 ways:
- 1- Maximum 6.5% per annum (0.54% per month) for SMEs listed in priority sectors
- 2- Maximum 7.5% per annum for unregistered SMEs and SMEs listed in non-priority sectors.
Say Sony, Executive Vice President of PRASAC, said: “PRASAC has been engaged in ‘SME Co-financing Scheme’ since the first phase, pitching in USD 5 million and disbursing USD 10 million under the project. We are committed to match these figures again in Phase 2 with the objective of bolstering and developing the small and medium-sized enterprises and to create employment opportunities in Cambodia.”
He added that this special scheme will continue to enable SMEs to access loan more easily and at lower costs. Therefore, small and medium-sized enterprises which need capital can apply for the loan under the ‘SME Co-Financing Scheme Phase 2’ at any PRASAC’s branch, or call 023 999 911 or 086 999 911 for more information.
Mr. Sony continued, “On behalf of Management and Staff of PRASAC, I would like to laud the government’s efforts in fighting COVID-19 epidemic including the national vaccination campaign and its economy recovery strategy. We do hope general business activities will be back to normal as soon as possible. PRASAC still provides loans to clients as normal to restart or expand their businesses. We are ready to serve them through this scheme as well as directly through our own funds.”
He added, “We would like to thank all the borrowers who have supported and used PRASAC’s loan services and would like to wish you all the good health and safety in this tough time. Please take cautious actions to protect yourself, your family, your community and our nation as a whole. And let’s join together to fight COVID-19 outbreak and stay safer.”