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Credit Products

ARDB provides short-term loan less than a year and long-term loan longer than a year. Type of loans product including: term loan, ceiling loan, ឥណទានបោះបន្ត institutional supporting loan and over draft loan. These loans products are appropriate to time required in production, processing and investment ect….

What are the interest rates?

Interest rates are adjusted according to market trends. For funds coming from donations or funds received from international financial institutions, interest rates are set according to the terms and conditions of the agreement between the donors or lenders and the ARDB or Royal Government of Cambodia.

1. Term loan

This type of loan is for a specific period of time where both interest and principal are amortized over the loan period. A term loan may be extended as long-term subordinated debt, which would be considered as equity of the MFI. Initial draw-down of loan by partner shall not be more than 50% of the approved loan. Maximum: 3 draw-downs. Period of loan: 3 to 5 years with review in 18 months.

2. Credit line

The principal is maintained over the period of the loan and repaid at the end of the loan period. Interest is regularly paid on the outstanding principal balance.

Amount and number of draw-downs: unlimited number of draw-downs based on the evaluation of credit officer and disbursement policy. Period of loan: 3 to 5 years with review in 18 months. Mode of payment: full payment of the amount of each draw-down within 12 months.

3. Secondary loan

This primary lending window provides loans to secondary lenders that on-lend the funds to secondary borrowers which retail the funds to end-borrowers.

4. Institutional credit

Institutional credit is provided to finance the institutional development and capacity building programs of partners to strengthen their organizational capacity. These loans are usually given to program partners for start-up or expansion.

5. Over draft loan

It is a kind of short term loan for micro-finance institution and companies related to agriculture sector for using when facing any cash flow problem.

6. Long-term loans

This lending facility is provided to agriculture-industry planting or production in long-term mandates.