CATA Economic Upliftment

CATA EU program aims to uplift CATA members by providing equitable financial opportunities while fostering self-reliance and sustainable growth.

Term and Scope of Interest-Free Loan for CATA Poor Members

1. Eligibility Criteria:
• Must be an active CATA member with a valid membership.
• Household income must fall below the poverty threshold as determined by CATA guidelines.
• Must demonstrate a genuine need for financial assistance for livelihood improvement or small business support.

2. Loan Amount:
• Minimum: KHR 100,000
• Maximum: KHR 2,000,000 (depending on project feasibility and repayment capacity).

3. Loan Purpose:
• Support for small businesses or entrepreneurial ventures.
• Livelihood improvements (e.g., purchasing farming tools, livestock, or setting up small shops).
• Emergency needs that directly impact income generation (e.g., repairs, equipment).

4. Loan Term:
• Repayment period ranges from 6 to 24 months, depending on the loan amount and the borrower’s repayment ability.
• Flexible repayment schedules will be arranged.

5. Interest-Free Policy:
• No interest will be charged on the loan amount.
• Only a small administrative fee (if applicable) to cover processing costs.

6. Repayment Plan:
• Equal monthly installments, tailored to the borrower’s financial situation.
• Early repayment options available without penalties.

7. Monitoring and Support:
• Regular follow-up by CATA officers to ensure proper utilization of funds.
• Financial literacy training may be provided to assist borrowers in managing their loans effectively.

8. Default and Recovery:
• Borrowers facing genuine difficulties can reschedule or temporarily defer repayment payments.
• Persistent defaults will result in a review by the CATA loan committee, with solutions tailored to individual cases.