The National Bank of Cambodia begins a crackdown to protect customers from bad loans.

 

Even with plenty of banks and microfinance institutions to choose from, many Cambodians still opt for dealing with

private moneylenders who often charge too much interest and are quick to repossess property.

 

Customers may fall into a debt spiral due to very high interest rates and other additional fees compared to legal

institutions. Illegal lenders might confiscate customers’ property without going through the court.

 

Kea Borann, president of the Cambodia Microfinance Association, recently said “there are plenty of loans being

offered – trying to lure in consumers, but once they take the money, suddenly their interest rate jumps 50 percent.”

Illegal lenders have turned to social media to try and lure customers, as well as placing advertising signs on

tuk-tuks.

 

Kith Sovannarith, deputy director-general of banking supervision at the NBC said,

 

“The companies do not have consumer protection or protection principle for debtors, unlike the legitimate companies that have been approved by the bank, so people should be careful about dealing with these companies.”

Sathapana Bank and Wing (Cambodia) Limited Specialised Bank officially launched new financial services for customers of both banks. Sathapana customers can now access the platform offered by Wing to transfer money and pay their loans.

 

Wing Chief Executive Officer, Mr. Jojo Malolos, trusts the partnership will open more opportunities for millions of banked and under-banked people, residing in the areas where Wing is present, to access the financial services from Sathapana Bank meant for the expansion of their business, paying mortgage, child education, and other activities.

 

“We have seen thousands of people whose lives have been positively changed through the loan and deposit service from Sathapana Bank. Wing is here to help make their dream even easier through a fast, secure, and convenient way of mobile payment and fund transfer,” Mr. Malolos said.

 

“I am pleased to announce that it is now very easy and smooth to make fund transfers from Wing’s electric Wallet to Sathapana Bank accounts. Sathapana’s loan customers can make loan repayment through Wing’s Wallet by making money transfer to Sathapana’s savings or current account which will be automatically applied for loan repayment,” said Mr. Kato Norihiko, Chief Executive Officer of Sathapana Bank.