LOLC Micro Credit, the microfinance arm of Sri Lanka’s Lanka Orix Leasing Company (LOLC); VisionFund International, a microfinance investor owned by US-based Christian nonprofit World Vision; and Kredit Microfinance Institution, a microfinance institution (MFI) in Cambodia, have agreed to partner on a program run by Agence Francaise de Developpement, the international development arm of the French government, to provide loans for purchases of home solar panels in Cambodia.
The program will provide loans to customers with a monthly interest rate of 2 percent. Due to the wide variation in the quality of solar panels, the loans will be contingent on the certification of the systems to be purchased. Details on the certification process have not been released.
As of September 2015, VisionFund has a loan portfolio of USD 488 million outstanding to approximately 1 million borrowers in 32 countries. As of September 2015, Kredit reported total assets of USD 136 million and return on assets of 1.40 percent. Although financials for LOLC Micro Credit are unavailable, LOLC reported total assets of LKR 246 billion (USD 1.75 billion) and return on equity of 12.9 percent.
By Caroline Zhu, Research Associate
About LOLC Micro Credit
LOLC Micro Credit Limited provides individual and group loans for microentrepreneurs in Sri Lanka’s agricultural districts. Founded in 2009, LOLC Micro Credit is the microfinance arm of Lanka Orix Leasing Company (LOLC), a Sri Lankan financial services provider launched in 1980 by the World Bank Group’s International Finance Corporation, the Sri Lankan government and Japan’s Orix Corporation. Financials for LOLC Micro Credit are unavailable. LOLC reported total assets of LKR 246 billion (USD 1.75 billion) and return on equity of 12.9 percent.
About VisionFund International
VisionFund, a US-based nonprofit organization, offers financial services to families living in poverty in the developing world through a network of microfinance institutions in 32 countries in Asia, Africa, Latin America and the Caribbean, the Middle East and Eastern Europe. Its services include small loans and business training and support. VisionFund is part of US-based World Vision, a Christian relief, development and advocacy organization. As of September 2015, VisionFund has a loan portfolio of USD 488 million outstanding to approximately 1 million borrowers in 32 countries.
About Kredit Microfinance Institution
Founded by World Relief US in 1993, Kredit Microfinance Institution is a Cambodian microbank. As of December 2014, Kredit provided loans to approximately 89,188 families and collected savings from 24,223 depositors in 17 out of 25 provinces and cities of Cambodia. As of September 2015, Kredit reported total asset of USD 136 million and return on assets of 1.40 percent.
Sources and Additional Resources:
[1] Khmer Times news, “Solar Financing on the Way”, http://www.khmertimeskh.com/news/15590/solar-financing-on-the-way/
MicroCapital Universe Profile: LOLC Micro Credit
MicroCapital Universe Profile: VisionFund International
MicroCapital Universe Profile: World Vision International
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