Phnom Penh Commercial Bank will offer “wedding loans” to newlyweds, a product based on a similar borrowing practice is South Korea.
The majority-owned South Korean bank will set aside more than US$1 million for start-up families that don’t want their parents shelling out savings for new homes.
“Some couples want to marry but they don’t want to rely on their parents, so they can come to the bank and tackle their own problem,” Hak Vuthy, loan team leader at PPCB, said yesterday. “This is a good option for those who have medium income. They can save and get married.”
The product had been popular in South Korea, Vuthy said.
It is also an attempt to diversify the bank’s services in Cambodia, where industry insiders have long called for innovative products.
Prasac Microfinance general director Sim Senacheert said the name of the new service was meant to attract newlyweds, but the loans and interest rates would be similar to those already available.
To contact the reporter on this story: Rann Reuy at [email protected]