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IFC, a member of the World Bank Group, has provided a loan of up to $10 million to PRASAC Microfinance Institution Ltd., Cambodia’s largest organization of its kind, to increase lending to micro, small and medium enterprises in the rural and agricultural sectors.

The long-term funding will enable PRASAC to accelerate growth of its lending portfolio to reach $900 million with the total number of outstanding loans reaching 350,000 by the end of 2019, according to IFC.

Cambodia’s microfinance sector has been developing rapidly with annual growth rates of more than 30 percent in the last 20 years, benefiting more than 1.9 million borrowers. Yet, demand for credit remains huge. By directly investing in Cambodian microfinance institutions, IFC aims to expand lending to more than 845,000 borrowers, or about 48 percent of the number of borrowers served by microfinance lenders in Cambodia at present.

“This is the fourth loan IFC gave to PRASAC over the past 3 years, further supporting PRASAC’s continued efforts to offer financing to micro and smaller businesses, and low-to-middle income borrowers as well,” said Sim Senacheert, PRASAC’s Chief Executive Officer.