Mrs. Sovann Phai Village Bank Group

Seventeen people who are all in Kandal village in Takeo province make up the village bank loan group, and they will use the loan which they obtained for different purposes. Mrs. Sovann Phai is the village bank president, and she is a farmer who owns a small piece of land where she cultivates rice to earn a living. Aside from this planting, she is a silk weaver in the local village.

Her husband, Mr. Phai Pheurn, is a construction worker. Since his work place is far from house, Mrs. Sovann Phai decided to ask for a loan to buy a motorbike for her husband to ride to work in order to reduce their expenses. Mrs. Sovann Phai is 35 years old and the mother of four children, two of whom are attending the local school. The other two are too young to work or study so they stay home.

Mrs. Phen Phai did not come to take the loan but her father did, so he is in the picture instead her. He is sitting behind the other villagers.

Eleven members in this group have end-of-term loans and the rest have monthly payment loans. The EoT borrowers are not required to pay any principal on the loan until the very end of the loan term. End-of-term (EoT) loans are AMK’s main product because it is the most beneficial to Cambodia’s poor. It allows them to repay portions of the principal whenever they are financially able to. Most clients start to make payments many months before the end of the loan term. Almost all of AMK’s clients make their payments on time. AMK has a delinquency rate of only 0.09% and AMK has a default rate of 0% on Kiva.




About Group Loans
In a group loan, each member of the group receives an individual loan but is part of a group of individuals bound by a group guarantee. Under this arrangement, each member of the group supports one another and is responsible for paying back the loans of their fellow group members if someone is delinquent or defaults. Learn more

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