Thanks to the support of DARA Europe, SCCO provides microloans to people who want to build a better future. With a microloan, parents in Andong can start or expand their own businesses. Allowing them to earn enough income to support themselves and their families while working towards a stable future.
What is a microloan?
A microloan is a small loan, often interest-free, intended for new or small entrepreneurs. It enables them to make essential investments, such as purchasing transportation, tools, or ingredients. These investments help in scaling up their businesses and thereby allow individuals move beyond survival mode and earn a little extra each month.
SCCO launched its microloan program as a pilot in 2022. The program encourages entrepreneurship and helps participating families gradually build financial independence. Participants repay a portion of their loans interest-free each month, allowing the funds to be lent out to others. Five families participated in the pilot program in 2022 and have already repaid their loans. In 2023, seven families received microloans, and another nine families joined the program in 2024.
Less financial stress, more hope
Mr. Nounn and Mrs. Nei are an inspiring example of the power of microloans. They have three children: an eight-year-old daughter and three-year-old twins. With an SCCO loan, they were able to grow their home-based shop. They invested in additional products such as instant noodles, spices, and soft drinks, expanding their inventory.
This increased their revenue, giving them more financial security to care for their family. Nei shared, “With a bank loan, I had to pay a lot of interest, leaving little money left. Thanks to SCCO’s microloan, I can save more for my family and reinvest in my shop.” The loan provided not only material resources but also hope. “My daughter enjoys attending the local primary school and takes extra classes at SCCO,” Nei proudly added.
The story of Mr. Mean and Mrs. Hong Srey further demonstrates how microloans can change lives. Together with their two daughters, they make a living selling shells from a trailer. Until recently, they had to rent a trailer, which resulted in high expenses and minimal profit. With an SCCO loan, they were finally able to invest in their own trailer.
“Now we have enough to take care of our children,” said Mrs. Srey with relief. Their higher income has not only provided financial security but also peace of mind and stability, enabling them to work with greater confidence towards their family’s future.
The Impact of Microloans
Microloans are more than just financial tools; they help people build more stable lives by giving them a small but much needed boost. With this additional income, communities are strengthened, and people no longer have to live day to day. They are given the opportunity to dream of a better future.
The SCCO program, supported by DARA Europe, proves that small investments can lead to significant changes. Microloans improve lives and allow children, like Nei Somaly’s daughter, to attend school without worry. It is an investment in people – in their dreams, strength, and potential. With this vision, SCCO and DARA Europe continue working together toward a world where everyone has the opportunity to thrive.
