Cambodian farmers struggling to grow their agricultural businesses may soon find it easier to secure financing, even without owning land or valuable assets. Commerce Minister Cham Nimul recently reaffirmed the Royal Government’s commitment to supporting farmers through loan guarantee initiatives that connect financial institutions with agricultural producers across the country. The move is designed to reduce financial pressure on farmers while encouraging business expansion and stronger agricultural productivity.
Government Pushes Easier Access to Financing
Many farmers in Cambodia continue to face difficulties when trying to expand their farms or agricultural businesses due to limited access to investment capital. According to the minister, the government is working closely with public banks, private banks, and microfinance institutions to provide more accessible financial support with lower interest rates.
During a recent media interaction, Nimul explained that farmers can apply for loans through state owned institutions such as the Agricultural and Rural Development Bank and the SME Bank. These financial institutions are offering low interest loans aimed specifically at helping farmers strengthen and expand their operations.
Speaking during the celebration of the ‘World Intellectual Property Day 2026’, Nimul said that, “To expand businesses, farmers can take a loan from the established state-owned banks such as the ARDB and SME Bank with low interest rates.”
Farmers No Longer Need Traditional Collateral
One of the biggest concerns for farmers has always been the lack of collateral needed to secure loans. Many agricultural workers do not own valuable assets such as land titles, houses, or other property that banks usually require before approving financing.
Nimul stressed that farmers can now seek support through the Ministry of Commerce’s secured transaction system. Under this arrangement, the ministry works as a guarantor between farmers and partner financial institutions, making it easier for eligible farmers to obtain funding without pledging physical assets.
“Another option is through the MoC’s secured transaction, meaning that farmers can take a loan from MoC partner banks and MFIs with a transaction that is secured by the ministry, with almost 100 percent of registered banks and MFIs presented in Cambodia that are partners with the ministry.”
The minister noted that farmers only need to have a registered business with the Ministry of Commerce to qualify for the programme. Once approved, they can apply for loans through participating banks and MFIs without depositing collateral.
Loan Approval Based on Future Agricultural Income
Instead of relying on physical assets, the new financing approach evaluates the farmer’s expected income after harvest. Businesses recognised by the Ministry of Commerce can submit loan applications based on estimated production and future earnings.
This, Nimul explained, “Farmers can expect the possible yields for a set period of time and use it to calculate against the financial needs to make this happen and submit a loan document to the partner banks or MFIs. If the loan is granted, farmers will have the capacity to return the loan after harvesting, with the repayment guaranteed by the MoC.”
The approach is expected to provide farmers with more flexibility while helping them invest in crops, farming equipment, and production expansion without fear of losing personal assets.
Support Available Across Agricultural Sectors
The initiative is not limited to one type of farming. According to the minister, self employed farmers working in rice, cashew, and other agricultural sectors can all benefit from the programme as long as they meet the required conditions.
“As long as they [farmers] are eligible, they can register and get a loan from the partner banks or MFIs in any range possible with the acknowledgement and recognition from the MoC, without having to deposit the collateral at the bank or MFIs.”
The minister went on to add: “Farmers who are self-employed in any agricultural sectors, whether it is rice, cashew or other sectors, can rest assured without having to worry if they do not have active assets such as land, house, or others to be used as collateral to get financial support.”
Beyond financing, the Royal Government has also continued investing in technical support, market expansion, infrastructure development, and low interest financial assistance to strengthen Cambodia’s agricultural sector and improve rural livelihoods.
Conclusion
The government’s latest financing initiative could become a major turning point for Cambodian farmers who have long struggled to access capital due to strict collateral requirements. By allowing eligible farmers to secure loans through Ministry of Commerce backed guarantees, the programme opens new opportunities for agricultural growth, higher productivity, and stronger rural businesses. As Cambodia continues supporting its farming sector, easier access to financing may help thousands of farmers invest with greater confidence and contribute more strongly to the national economy.