Mrs. Sokhom Iv Village Bank Group

This village bank loan group consists of twenty-one people who live in Peam Prachum Village in Kandal Province. Mrs. Sokhom Iv was selected by the members to be the village bank president. She is a farmer. She owns a piece of land on which she grows rice and vegetables. She has a problem because she does not have rice seed to sow on the field. Thus, she decided to ask for a loan to buy rice seed. She will use the rest of loan to buy a sewing machine for her child. Mrs. Sokhom Iv is a 48-year-old widow. She has two children who are employed in a garment factory.

Six members in this group loans have taken end-of-term (EoT) loans and the rest have monthly-payment loans. Borrowers with EoT loans are not required to pay any principal on the loan until the very end of the loan term. End-of-term loans are AMK’s main product because they are the most beneficial to Cambodia’s poor. It allows them to repay portions of the principal whenever they are financially able. 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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