About Borvor
Borvor Finance PLC was previously called the Cambodian Community Savings Federation (CCSF) and started as the Small Economic Activity Development project of CARE Cambodia, financially supported by AusAid through CARE Australia in 1998. It transformed into CCSF in 2003 and Borvor in 2017. It works in the provinces of Battambang and Banteay Meanchey in northwest Cambodia.
Borvor Finance is registered with the Ministry of Commerce and has a license to operate as a rural credit operator from the National Bank of Cambodia.
What is Borvor’s mission?
Its mission is to ‘provide affordable financial services to low-income families, especially women, responsive to their needs and improve their standard of living’. Roughly two thirds of its borrowers are women and over 90% live in rural areas. The vast majority of its clients are smallholder farmers growing rice.
What types of financial services does Borvor provide?
It provides loans directly to individuals to invest in their businesses. The loans are used primarily to purchase assets but are also used as working capital by clients. At present it has just over 2,600 active loans.
How much interest does Borvor 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 most representative loan product of Borvor funded by Lendwithcare attracts an Annual Percentage Rate (APR)* of 17.93%.
*The Annual Percentage Rate (APR) is a standard way of expressing the cost of a loan that allows for comparison between loans. It includes annual interest, insurance, and fees that the borrower must pay, and it is expressed as a percentage of the amount borrowed.
Does Borvor provide any training?
No, Borvor does not provide clients with training.
Where can I find out more information about Borvor?
Further information about Borvor is available from the organisation's website here.
Borvor: Basic facts and figures (March 2023)
Full name: | Borvor Finance PLC |
Established: | 2017 (started as CCSF in 2003) |
Average loan size: | US$3,007 |
Number of active loans: | 2,281 |
Outstanding loans portfolio | US$6,859,622 |
Portfolio at risk (PAR) at 30 days*: | 4.34% |
Proportion of loans given to women: | 66% |
Proportion of loans given in rural areas: | 94% |
*PAR30 is a commonly used metric that provides an insight into the quality of an MFI's loan portfolio, which is generally its major asset and therefore its greatest source of risk. It is computed by dividing the amount of delinquent loans greater than 30 days over the total amount of the loan portfolio.
Cambodia: Basic facts and figures (June 2023)
Population: | 16.58 million* |
Currency: | Cambodian riel* |
GDP per capita: | US$1,625* |
Inflation (GDP deflator): | 1.3%* |
Life expectancy: | 70 years** |
Human Development Index ranking: | 146 (of 191 countries)** |
Population using safely managed drinking water: | 28%*** |
Infant mortality rate (per 1,000 live births): | 21* |
Percentage of adults with a bank account: | 33.9%* |
Sources: *World Bank 2021 **United Nations Development Programme 2021 ***WHO 2020 ****
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