Bank Loan Interest Rates for Home Buyers in Cambodia

Buying a home is a big decision. One of the most crucial parts of buying a home in Cambodia is understanding bank loan interest rates. This blog will help first-time homebuyers and investors understand Cambodian bank loan interest rates and how to get the best deal.


What Is The Bank Loan Interest Rate?

The bank loan interest rate is the amount you have to pay beyond the amount borrowed from the bank. It appears as an annual percentage rate (APR), which can change based on your credit score, loan term length, and other factors. The APR includes any fees associated with getting the loan, such as application or origination fees. You will pay a lower annual percentage rate if you have a high credit score.


Types of Bank Loan Interest Rates in Cambodia

Cambodia has two standard loan interest rates: fixed-rate and variable-rate loans.


Fixed-Rate Loan

A fixed-interest loan is ideal for maintaining a secure budget. With a fixed interest rate, you know what you will owe each month and can plan accordingly—no surprise interest hikes to throw your finances off balance. You also don’t have to worry about rising interest rates eating into your budget later in the loan because those rates remain constant. It provides long-term stability; instead of risking potentially higher payments further down the line, you’ll have peace of mind knowing that your monthly payments won’t change. A fixed-rate loan helps you stay on track with your financial plans and gives you the confidence to take steps toward your goals.


Variable-Rate Loan

If you’re considering taking out a bank loan, you should keep an eye out for variable-rate loans. Unlike the fixed-rate bank loans most people are familiar with, variable-rate bank loans have interest rates that can go up or down over time based on market conditions or other factors—meaning your monthly payments could change unexpectedly. With a variable-rate loan, you can save more when bank loan interest rates go down since your loan amount will adjust accordingly. But, of course, you should also be mindful that bank loan rates can rise just as quickly and without any warning. Either way, looking into a variable-rate bank loan can help you get more for your money, no matter what happens to influence bank interest rates.


What Are Cambodian Loan Interest Rates?

The average bank loan interest rate varies from bank to bank and depends on various factors, including the type of loan, credit score, down payment size, and more. Generally speaking, Cambodian banks offer fixed-rate loans ranging from 5% – 8% APR for 15-year loans and 6%-9% APR for 30-year loans; variable-rate loans tend to go from 4%-7% APR for both 15-year and 30-year terms. However, it’s essential to shop around for different lenders as there may be differences between individual banks regarding both fixed-rate and variable-rate loans.


Types of Bank Loans Available for Home Buyers

Home Loans

In Cambodia, people get home loans from banks to buy things like a house or land. Home buyers in this lively nation have more home loan options at competitive bank rates. They are suitable for people in Cambodia because they can get money from the bank to buy something expensive without having to pay a lot of money upfront. For those considering buying or building a house in Cambodia, home loans are now widely available and increasingly accessible. 

Not only do these loan opportunities open up financial flexibility for buyers, but low bank loan rates often make them an attractive option compared to other forms of financing. Home loan arrangements often include terms that make it easy to pay off the loan, such as fixed-rate mortgages and amortization over 25 years. Whether you are a first-time or experienced homeowner, home loans in Cambodia are a great method to buy your dream home.


Home Equity Loans

Loans from banks secured by the equity in the borrower’s home are known as “home equity loans” in Cambodia. The bank determines the loan amount based on the mortgage and other property debts paid off. Home equity loans are an effective way to finance projects or investments in Cambodia. Low-interest rates and the ability to make recurring payments over time are features of the home equity loan. Homeowners can now leverage their home equity—the difference between their home’s market worth and their debts—to get more cash.

With a home equity loan, you can pay for expensive home improvements, pay off credit card debt, or start a small business. The loan amount will depend on your credit history and available home equity. By getting a Cambodian home equity loan, borrowers can take advantage of the current bank rates and turn their existing fixed assets into powerful sources of liquidity that can help fund any venture they have in mind.


Home Investment Loan

Borrowers who get home investment loans can pay for big purchases over time. It helps ensure that any risks associated with a purchase will be effectively managed. These bank loans also help to diversify an individual’s investment portfolio by enabling property investments along with other fractional investments like stocks and bonds. Furthermore, home loan rates in Cambodia are still low, allowing savvy investors to accumulate substantial real estate equity while minimizing the bank loan interest due each month. From 10-year fixed-rate mortgages to particular housing loans, they will meet your needs and provide you peace of mind throughout the process. 

With the bank loan rates offered, purchasing a new home or upgrading your current one is much more accessible than ever. Cambodian bank loans indicate you don’t have to wait to buy your ideal home.

Construction Loan

A construction loan in Cambodia might be the right option for individuals or business owners looking to finance a project quickly and efficiently. With bank loan rates far less than those found in other countries, this type of loan offers lots of flexibility, allowing borrowers to tailor the repayment plan to their needs and budget. As well as helping you get your project off the ground quickly, this kind of financial support also allows you to take control of your finances for ongoing projects. It is an efficient, cost-effective, and convenient way to keep your construction projects on track without breaking the bank.



For home buyers in Cambodia looking to get a mortgage or other type of home loan, understanding bank loan interest rates is essential when it comes time to choose one that fits their needs. Fixed-rate loans typically have an APR of 5%–8%, depending on factors including credit score and down payment. In contrast, variable-rate loans usually range between 4%-7%. No matter what kind of mortgage you choose, shopping around for different lenders is critical to finding an affordable option that works best for you.


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