Prey Veng authorities have detained 64 individuals in connection with illegal high-interest lending, according to the Ministry of Interior. The ministry stated that interest rates charged in these cases ranged from 80 to 85 percent, which is well above the legal limit.
A press release from the Ministry of the Interior, dated October 6, 2025, stated that Prey Veng authorities, working in conjunction with the national police, had arrested five separate groups of suspects across five locations. These individuals were found to be offering loans with extremely high interest rates and operating in fraudulent schemes. Four of the groups were unlicensed, while one held only a limited pledge license.
Police chief of Prey Veng, Chheun Bun Chhorn, explained that these lenders charged between 10 and 15 percent interest during the first month. However, borrowers were later forced to make daily payments covering both principal and interest on the initial loans. Chheun Bun Chhorn emphasized that the case was complex, involving organized branches, agents, and detailed plans, with most victims being poor and financially illiterate.
The leaders of the five lending groups have been referred to the Prey Veng Provincial Court to continue legal proceedings.
A recent report by Licado and Equitable Cambodia organizations found that most borrowers were heavily in debt, with some selling land to repay loans. More than two-thirds of borrowers acknowledged that their families were over-indebted. Around 27 percent were spending over 70 percent of their monthly income on debt repayments.
The study estimates that over 167,000 Cambodians nationwide have sold land over the past five years due to overwhelming debt pressures, highlighting the widespread impact of illegal high-interest lending on vulnerable communities.
