Monday, March 31, 2014

Aeon MFI to expand in Cambodia

31 March 2014

Aeon Microfinance (Cambodia) plans to expand its branches in Cambodia this year and also diversify its products from the current base after two years of operating in the Kingdom.

Until now, the microfinance institution (MFI) which is part of the same Japan-based conglomerate building a mega-mall next to the Sofitel in Phnom Penh has provided financing for motorcycles, home appliances, computers and mobile phones. Aeon official said last week that Cambodia is a high-growth market. Aeon says it has received a total of 50,000 applications for loan installments since starting up in December 2011 and now gets about 3,500 new applications every month. The outstanding loan portfolio was about $2.2 million at the end of 2012, and increased almost five-fold to $10.9 million by the end of 2013.

Aeon business expansion in Cambodia is quite successful and this year they expect the sales to reach $24 million, which will increase 163% from 2013 since the company is focusing on mobile phones, electric appliances and motorbikes, demand from younger applicants has increased.

At the same time, Aeon is heading in new directions. This year they will expand to the agriculture equipment such as cultivator or big tractor. Aeon’s other new service is the personal loan. Since March, the firm has been allowing customers to apply for cash loans without putting up any collateral at interest rates of 2.7% to 2.9% per month.

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