There is a common perception that home loans can not be obtained against the purchase of soft title properties. But, banks like Sathapana, ABA and ACLEDA can help people in the purchase of non-hard title properties.

Not surprisingly, Sathapana’s conditions are somewhat stricter than hard titled properties, with loans of up to $100,000 available to borrowers at 11% P.A. over 10 years.

The following is an overview of Sathapana’s borrowing conditions:




Hard title deed

Soft title deed





Interest rates

8.5% P.A.

9% P.A.

11% P.A.


Up to 20 years

Up to 15 years

Up to 20 years

Processing fee1& (one-time fee on approved loan limit)
Payment modeFlexible payment terms
Maximum loanUp to 70% of the property value
CollateralHard title or soft title deed
  • Competitive interest rate
  • Easy access to our branch network nationwide
  • Flexible repayment terms
  • Cambodian citizens aged 18 to ​60 years
  • Permanently residing in the country
  • Living at a permanent address certified by local authorities
  • Employed with regular salary or business owner with stable income
  • Other relevant documents as requested.
  • National ID document (NID) / document issued by an official authority
  • Photocopy of Title Deed of property
  • Sales & Purchase Agreement (SPA)
  • Employer letter confirming salary and/or income for last 3 months
  • Photocopy of 6 months bank statements, fixed deposit receipts, saving passbook and other financial assets
  • Property Valuation report
  • Loan repayment records (optional)
  • Other relevant documents as requested.
How to apply
  • Visit any branch with required documents or complete an online form.
  • Contact +855 (0) 23 / 81 999 010 or [email protected]

ACLEDA also offers loans for the purchase of soft title properties of up to $100,000 equal to 60% of the property value. Source 

ABA offers up to $30,000 towards the purchase of soft tile properties for around 1.3%/month according to the following criteria Source

  • Borrower 18-65 years old
  • Legal, harmless business (not an environmentally or socially damaging business) running for at least 6 months
  • Monthly loan repayment of not exceeding 70% of net disposable income from the business per period (Principal and Interest)
  • Property title (in own name or in third party name) as collateral for the loan. Positive information at Credit Bureau of Cambodia.
From Khmer Times (December 11 2014)

PHNOM PENH (Khmer Times) – If you are from America or Europe, you expect that having a steady job with a good income means that you can borrow money from a bank. Not so in Cambodia. In a survey of six local banks, all said that a land title is a requirement for getting a loan.

Banks refer to a land title as “collateral” – and this collateral cannot be a movable object, like a car, a boat, or a motorcycle.

It comes down to the fear that if the borrower does not pay, the bank won’t get its money back because Cambodia’s laws are weak, explains Lun Bouna, a credit officer at Cambodian Public Bank that also requires a land title for loans.

Yet for small business owners or entrepreneurs with new business ideas – this leaves little choice for obtaining loans. “There are very few banks (in Cambodia) that are willing to lend to start-up companies that don’t have at least a three year track record of being in business for profit,” says Anthony Galliano, an American banker who now has an investment management company in Cambodia.

Part of the problem, he added, is that businesses in Cambodia have poor accounting practices and are not audited – so banks can’t rely on their financial records while making loans.

Microfinance Loans Too Small

Microfinance institutions in Cambodia provide some loans without requiring the borrower to have a land title – only an ID card is needed – but these loans are generally very small and interest rates outrageously high.

For example, Amret Microfinance only makes small loans – a maximum amount of $500 per person, and some people cannot even get the $500, said the company’s deputy chief of credit Rom Ratha. Interest rates range from 1.9 to 2.2 percent per month and the loan needs to be paid back within a year at the longest.

Aeon Microfinance lends between $100 and $3,000, depending on the customer’s income, and has an interest rate of 2.9 percent per month, said Puth Leakena, a call center employee at Aeon Microfinance. In most cases, a borrower can get a loan that is about two times their monthly salary, Ms. Leakena said. (The average income in the country is about $100 per month.) Foreigners cannot borrow from Aeon Microfinance at all.

Only Short-Term Loans

Even for customers who have land titles, Cambodian banks are unwilling to lend money for long periods of time. Most business bank loans in Cambodia are made for less than five years, Mr. Galliano said – compared to the United States, where banks make mortgage loans that span decades.

The unwillingness to lend for long periods of time affects long-term projects, such as construction, Mr. Galliano said. Because of this, businessmen here often turn to equity rather than debt for financing. Equity means that people try to get business partners to invest into the project with them.

On the positive side, the banking sector in Cambodia has been making some positive steps forward.

The country’s first credit bureau was established about two years ago, according to Galliano. This means that Cambodian banks can now report lenders for not paying back their debt and can avoid making loans to borrowers who had previously defaulted on payments.

“If you default on a loan, you’re going to get reported,” he said. “You can also go after someone in court if they don’t pay.” However, Cambodian banks rely more on the local people’s fear of “losing face,” or having their reputation destroyed, Mr. Galliano said. There are a few special cases in which it might be possible for a borrower to get money from a Cambodian bank without a land title.

Getting a loan in Cambodia

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