Small Business Loan Applications Decline in Cambodia's Second Quarter 2025

Strategic Insights -

The second quarter of 2025 witnessed a significant decline in personal loan applications for small businesses in Cambodia, with a 15.7% fall reported by Credit Bureau Cambodia (CBC). This decline was primarily driven by a decrease in working capital, agriculture, asset finance, and other applications. However, construction applications saw a modest increase of 4.4%. The total number of loan accounts dropped by 1.2% to approximately 1.79 million accounts, while outstanding balances reached $35.54 billion, a 0.8% increase from the previous quarter.

Key Takeaways:

  • The number of personal loan applications for small businesses fell by 15.7% in the second quarter of 2025, as reported by Credit Bureau Cambodia (CBC).
  • Working capital applications declined by 16.3% quarter on quarter, agriculture applications by 9.3%, asset finance applications by 20.3%, and others by 24.5%.
  • Construction applications increased by 4.4%, bucking the trend of declining applications in other categories.
  • The total number of loan accounts decreased by 1.2% to approximately 1.79 million accounts.
  • Outrighting balances grew by 0.8% to reach $35.54 billion by the end of the second quarter.
  • The instance of 90+DPD (days past due) was 7.4% higher this quarter than the previous one, at 6.9%.
  • The Tonle Sap region saw the largest increase in 90+ DPD, at 9.2%, followed closely by the central plateau at 9.0% and the coastal regions at 8.5%.
  • CBC CEO Oeur Sothearoath noted that while the number of loan accounts for small businesses decreased, the credit performance remains "resilient" with an outstanding balance growth of 0.8% in Q2.

Statistics:

  • 15.7%: decline in small business loan applications in the second quarter of 2025 (CBC).
  • 16.3%: decline in working capital applications quarter on quarter.
  • 9.3%: decline in agriculture applications quarter on quarter.
  • 20.3%: decline in asset finance applications quarter on quarter.
  • 24.5%: decline in "others" applications quarter on quarter.
  • 4.4%: increase in construction applications quarter on quarter.
  • 1.2%: decrease in the total number of loan accounts.
  • $35.54 billion: outstanding balances by the end of the second quarter.
  • 0.8%: growth in outstanding balances.
  • 7.4%: increase in 90+ DPD instance this quarter compared to the previous one.
  • 6.9%: 90+ DPD ratio in the second quarter.
  • 11.2%: 90+ DPD ratio in the construction sector.
  • 9.2%: increase in 90+ DPD in the Tonle Sap region.
  • 9.0%: increase in 90+ DPD in the central plateau.
  • 8.5%: increase in 90+ DPD in the coastal regions.
  • 6.7%: increase in 90+ DPD in the plains.

Sources:

  • Credit Bureau Cambodia (CBC), "Report on Small Business Credit Applications in Q2 2025"