Parami Institute Of Continuing Education

Microfinance Interest Rate Cap Policy in Cambodia 

By

Hnin Ei Ei Naing 

The project focuses on analyzing the impact of the Interest Rate Cap Policy implemented by the National Bank of Cambodia on microfinance institutions (MFIs) in Cambodia. Prior to this policy, MFIs in Cambodia were charging considerably higher interest rates, which raised concerns regarding borrower welfare and fair lending practices.  Therefore, the policy was introduced in April 2017 and aimed to regulate the microfinance sector by capping the annual interest rate at 18%. However, the policy itself imposed challenges for the microfinance borrowers. 

Policy Brief_HNaing_GCCW - HninEiEi Naing.pdf