Cambodian Microfinance Association: avoid dangerous illegal loans

The Cambodian Microfinance Association has urged people in need of loans to use services from legitimate financial institutions and to avoid unofficial mortgages or online loans – which can have serious consequences.

Kaing Tong Ngy, spokesman for the Cambodian Microfinance Association, expressed support for the NBC’s announcement that people should avoid unofficial loans or online loans because these illegal loans have a huge impact on people .

They can lead t exorbitant interest rates and lending without a clear study of the impact on customers.

Not only that, when customers are unable to pay, they may commit immoral acts such as defamation, coercion, confiscation of property and so on.

Moreover, even the relatives of the borrower are under threat.

Mr. Kaing Tong Ngy’s remarks came after some people recently fell into debt due to high interest rates on loans.

There have also been cases where some online lenders have posted claims from their creditors. R

elatives and friends of some of the debtors were also harassed and threatened by the creditors on the phone or on social media.

Mr. Kaing Tong Ngy said, “The MFI also calls on the public and the general public, if there is a need for a loan, please turn to a loan from an official licensed institution. Although sometimes it takes a little time to document, but it is a mechanism to protect you because the institution must ensure that you use the loan on purpose, it helps your life improve after using the loan, so we need to study in depth.

Informal lenders who do not care what you do, it is easy only then, but when something happens, there is coercion and customers are forced to sell property or transfer property to the borrower. .

He added that citizens who are threatened should complain to the competent authorities, especially for online loans should complain to the Department of Technology Crimes, which may have the technology to track and target them.

The National Bank of Cambodia (NBC) recently warned against taking legal action against unlicensed companies or individuals who are active in providing credit to citizens and urging all citizens to use official financial services inder the supervision of the National Bank of Cambodia, because the customers of those institutions are protected by law.

According to a press release from the National Bank of Cambodia, in the past, the National Bank of Cambodia has observed that some crooks have openly advertised by giving credit to the people in various forms, such as online, social media, leaflets and posters in public places.

Lending by these unlicensed companies or individuals is against the law, especially the law on banking and financial institutions.

The National Bank of Cambodia condemns all forms of informal dissemination and informal lending and cooperates with the relevant authorities to take legal action against companies or individuals who engage in illegal activities in accordance with applicable legal procedures.