Mrs. Nara Toun Village Bank Group

The village bank loan which located in Spean Thmar village in Kandal province consists of 23 people and all the members will use the loan in different purpose. Mrs. Nara Toun is a village bank president and she is a perfume seller. Since this business is going well, she wants to expand it so she decided to ask for a loan to buy more perfume products to re-sell for an income. Her husband, Mr. Prum Sophal, is a construction worker and he is also a farmer. Mrs. Nara Toun is 30 years old and the mother of a child who is too young to work or study because that child is on the age of 2 years old. All the members are shown in the picture but some of whom are blocked.

Eight members in this village loans are end-of-term loans and the rest have monthly payment loans. They 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

Subscribe