The banking and financial sector in Cambodia has boomed within the last two years, and several banks in Cambodia have started to offer loan service. The National Bank of Cambodia started allowing banks to provide loans for purchase of land and construction of houses. So far millions of dollars were lent for the purpose because a great majority of people still can not afford to build their own house due to the lack of capital. Others can afford their own house construction but within a constraint of financial needs.
The total assets of Cambodia's banking system as of August 2004 were approximately 4,106 billion Riel (US$1,030 million). Loans account for only about one third of the banking system's assets, and it is impossible to estimate the percentage of loans, which are non-performing, according to the US state department.
ACLEDA Bank offers this home loan service in November 2006.
ACLEDA's client can borrow up to 75% of the total house costs with fixed interest rate for 10 years. After that, home mortgage loan carries a floating interest rate at average 11.52% per annum.
ANZ Royal Bank started its lending service in August 2007, offering a 15 year installments schedule. The requirements state that customers can borrow up to 60% of home purchase price and make monthly repayments.Borrowers can use the money for acquiring a residence, home equity or investment. Residential home loan is set at a variable annual rate of 8.5%, while both home equity and home investment loans are granted at a floating rate of 9.9% per year. Borrowers must be employed for several years with sufficient income for a period of two years and must show that he/she is going to have the means to pay back the bank.