Microcredits: Transforming families in Andong from financial struggles to success stories

In Andong, a community where many people live in poverty, SCCO has been offering microcredits since 2022, thanks to the support of DARA Europe. As part of the family support program, SCCO provides small, interest-free, microcredits. Join us as we delve into Mr. Noeun’s story to gain a deeper understanding of how microcredits are reshaping the lives of entrepreneurial families in Andong.

Understanding the significance of microcredits 

Tools purchased thanks to microcredit.

In Andong, it’s sadly not uncommon for families to be burdened by significant debts. Many are living day-to-day without a financial safety net to cover for unexpected expenses like medical bills or essential household purchases. When they seek financial assistance, they often turn to lenders charging excessively high interest rates.

SCCO envisions a different path. We acknowledge that some adults and families in Andong are entrepreneurial at heart and firmly believe in their potential to increase their income. This is why the microcredit program was introduced.

Real transformation for families 

The initial microcredits have already produced tangible results. Families are utilizing these credits to expand their businesses and create new opportunities. Examples include the acquisition of woodworking machinery, the purchase of a trailer to sell products at the nearby market, and the expansion of local shops.

One particularly inspiring success story hails from Mr. Noeun, a carpenter residing in one of Andong’s neighborhoods. He received a $250 microcredit to expand his woodworking business. Prior to securing this SCCO credit, he grappled with financial constraints and a shortage of materials. Much of his equipment was outdated and broken. This microcredit marked a turning point. Mr. Noeun attests, “My business is now flourishing because I can repair some machines and procure new equipment, such as those used for cutting and shaping wood. This makes it easier to do business and fulfill customer orders.”

Mr. Noeun
Mr. Noeun

Mr. Noeun took his financial responsibility seriously and diligently repaid the credit in manageable monthly installments. He underscores that the microcredit isn’t just boosting the family’s income but also positively impacting their mental well-being. “Since acquiring this microcredit, I worry less than before. We now have enough materials to carry out our work effectively, resulting in increased income and improved living conditions.”

In heartfelt appreciation, Mr. Noeun extends his gratitude to all the generous donors. “We want to express our warmest thanks for your compassion and attention to our struggling community. Your support through this microcredit has helped my family tremendously, and I see my children growing and flourishing, all thanks to their participation in SCCO’s educational programs.”

Your support make a difference

The story of Mr. Noeun highlights the profound impact of microcredits on families in Andong. Thanks to DARA Europe, families in this community now have the opportunity to grow, prosper, and build a brighter future. It stands as a shining example of how even small investments can make a significant impact.

If Mr. Noeun’s journey has inspired you, consider making a contribution as well.