Over the past decade, we observe that banking sector in Cambodia has been significantly grown. According to the National Bank of Cambodia (NBC) report, the total assets in the banking and microfinance sector at the end of 2019 reached $51.4 billion, an increase of 23,4%, and the banking sector’s assets alone increased to 190% of the country GDP.


An extensive banking products suit is widely accepted by the Cambodian people. For lending segment, NBC reported that there were over $32 billion in outstanding loans by the end of 2019 across some 3.1 million borrowers.


In spite growing number of the borrowers, there are still many gotten their loan application rejected. To learn more, Mr. Hong Cheap, Head of Commercial Banking of CIMB Bank will explain and provide you tips for a successful loan application as below.

Applicant’s Conditions

Both retail and corporate loan requires similar conditions. For an individual to apply for a loan, you must be Cambodian, aged from 18 years old to 65 years old. If you are seeking for financing to fund your business, your company needs to be legally registered either as a sole proprietorship, partnership, private limited company, public limited company, or foreign company with the Ministry of Commerce.

Factors for a loan rejection or approval

Though individual loan doesn’t require relevant documents as many as corporate loan, the processing and evaluation are quite the same for both cases.


  • Applicant’s Income

For individual loan application, you are required to have income at least 2 times of the monthly installment amount. For corporate loan application,you need to have incomeat least 1.3 or 1.5 times of the monthly installment amount.


However, if your income period is shorter than your loan tenure, your loan application doesn’t match. Your loan is approved only if your source of income and its duration are sustainable and increased.


  • Loan’s Purpose

As required, your loan’s purpose is legal, which help your life goal, yet doesn’t have negative impacts to others. Your approved loan is used to aligned with the purpose you applied. This ensure that the approved loan will succeed your goal.


  • Collaterals

The properties that is considered as loan collaterals include home, land, fixed deposit and any other countable properties. At CIMB Bank, the collaterals as resident or business or vacant land properties with the hard title deed are accepted. Some other banking institutions accept the soft title deed, yet with a higher interest rate.

Loan processing period

The actual period depends on each specific loan application. Some cases are quick for evaluation and study while others need more time and documents to verify and approve. For instant, the loan application approval attached with incomes as salary or property renting wage is within about two weeks while business income exceeds two weeks.


Business Loan, on the other hand may require a longer processing time. This due to comprehensive study in each business that varies from one to another.


Though it takes longer term for processing a loan approval, this ensure customers will grow with their loans, and there won’t be non-performing loan (NPL).

NPL & Credit

When NPL happens, not only the banks that will have negative impacts, but also customers themselves who face challenges and difficulties to make growing. On the other hand, if NPL doesn’t exist, banks earn the interest rate income as normal while customers earn their credit or good fame with growth as well.


Good credit helps customers to be able to apply for more loans with a bigger amount and faster processing. At CIMB Bank, NPL ratio stands at only 0.15% among the lowest in the banking industry. This show how the Bank takes care of its customers with a strong loan processing, evaluation and approval.


This article is brought to you by CIMB Bank as part of our ongoing efforts to raise the level of financial literacy among Cambodians. Financial knowledge and understanding are key to making well-informed and meaningful financial decisions that will improve all our well-being. This, in turn, achieves CIMB Bank’s purpose of advancing customers and society.