MFI

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mcam
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MFI

Post by mcam » Sun Dec 31, 2017 3:34 pm

Has anyone had any dealings with the MFIs here?
I’m looking to get a small loan in the future in the mrs name who is Cambodian. What is the process and how hard is it?
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that genius
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Re: MFI

Post by that genius » Sun Dec 31, 2017 3:58 pm

ID

Income letter from employer

Security - some accept ownership/reg card of motor vehicle

I suggest you try a bank first, lower rate of interest, but you would need proof of long-term employment

If you have that, why not try your employer?

Process is normally within a few days
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frank lee bent
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Re: MFI

Post by frank lee bent » Sun Dec 31, 2017 4:06 pm

if it is for land, you may be much better to deal directly with the developer as they often offer very low interest rates with low down payments and low documentation as the loan is secured by the property. it is a buyer's market with numerous small blocks of land in proximity to factory districts.

many of these factories require or will require boarding house style accommodation and returns over 18% and more are achievable with on site management.
even more money can be made with a little commissary dining hall for the tenants.
one might develop the property with the loan outstanding and get into positive gearing in a matter of months

i know a couple of khmer barang couples who have done this, and still expanding after 3 and 4 years respectively.
mcam
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Re: MFI

Post by mcam » Sun Dec 31, 2017 5:30 pm

frank lee bent wrote:
Sun Dec 31, 2017 4:06 pm
if it is for land, you may be much better to deal directly with the developer as they often offer very low interest rates with low down payments and low documentation as the loan is secured by the property. it is a buyer's market with numerous small blocks of land in proximity to factory districts.

many of these factories require or will require boarding house style accommodation and returns over 18% and more are achievable with on site management.
even more money can be made with a little commissary dining hall for the tenants.
one might develop the property with the loan outstanding and get into positive gearing in a matter of months

i know a couple of khmer barang couples who have done this, and still expanding after 3 and 4 years respectively.
Are we talking about purchasing land then building this type of accommodation there, or buying a building then converting it.

Also is this in Phnom Penh? I currently live out towards the airport and would like to stay in this area for work
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frank lee bent
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Re: MFI

Post by frank lee bent » Sun Dec 31, 2017 5:50 pm

purchasing land then building.
there is heaps of this kind of land behind the airport among the developing factory districts
mcam
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Re: MFI

Post by mcam » Sun Dec 31, 2017 6:00 pm

frank lee bent wrote:
Sun Dec 31, 2017 5:50 pm
purchasing land then building.
there is heaps of this kind of land behind the airport among the developing factory districts
Any idea of size and price? I’ve never thought about buying land here as I’ve heard it can be expensive
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Re: MFI

Post by pczz » Sun Dec 31, 2017 11:01 pm

I think most banks only lend large amounts and need proof of income. They are not always keen to lend to foreigners.
MFI usually do small loans over short periods at high rates. They usually lend to loan groups to share the risk and you are going to pay around 15% up even if it is secured on the land and they will need hard title. The mother in law wangled them into $500 loan on property they valued at $1500.

Prasac and Amret are old and well established. AMK is also moving up the chain. Prasac is in the process of becoming a bank.
Since the government capped interest rates the deposit rates have fallen. You can still get 8.7% in AMk for 12 month bonds, most of the rest are around 7 to 7.5% but the rate for usd or riel is now usually the same.

make sure no one sees you. A white face bumpos the price of land and building 50% or more!
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