Understanding microcredit
Know what a loan really costs before you sign, and decide whether borrowing is the right move.
- Duration
- 2 days · 12h
- Format
- Intensive multi-day, one day per week, or weekend
- Language of instruction
- Khmer, with English materials
- Locations
- Siem Reap, Kampong Chhnang, Phnom Penh
Objective
Enable participants to understand how microcredit works and assess whether borrowing is appropriate and financially sustainable.
Main topics
- What is credit?
- What is microcredit?
- Why people and businesses borrow
- Principal and interest
- Interest rates
- Loan duration
- Instalments and repayment schedules
- Collateral and guarantees
- Effective cost of borrowing
- Understanding loan agreements
- Borrower's responsibilities
- Risks associated with excessive borrowing
- Productive versus non-productive borrowing
- Using microcredit to finance a small business
- Evaluating repayment capacity
Practical exercise
Participants compare several fictional microcredit offers and determine which option is financially most appropriate.
What is included
- Trainer-led sessions in person
- Printed workbook and reusable templates
- Individual and group exercises
- Certificate of participation on completion