Kiva is a peer-to-peer lending platform that helps individuals to lend money to other individuals in developing countries. In October, it designated Kamworks as its field partner. This is a first for a Cambodian solar energy company!
“This partnership is a great opportunity, said Chhenghong Peanh, Project Coordinator at Kamworks. We can now offer our products to a new category of people — those with no access to the banking and microfinance systems.”
Often, rural Cambodians lack the necessary collaterals to receive a loan. “It does not mean that they cannot afford our solar home systems, explained Chhenghong. In fact, they will have the money over time. But with their fluctuating income and lack of savings, they cannot make the full payment up front. They often end up buying cheap and unreliable products, which often fail after a few months.” To address this recurring issue, Kamworks has been looking for alternative financial solutions. Kiva is one of them.
“Our rural customers have responded well to this new offer, continued Chhenghong. The fees we charge is minimal, so it is very attractive.” More importantly, it enables them to pay in installments, at their own pace. “This is what they appreciate the most, along with the quality of our products and customer service.”
In just a couple of months, Kiva's lenders have already funded fifty loans, thus improving the life of 250 more people in rural Cambodia!