Mr. Bu Hun Village Bank Group

The Village Bank Loan, which consists of 23 members, is located in Peam Prochum Village in Kandal Province, and Mrs. Bu Hun is the Village Bank President. All of the members plan to use the loan for a variety of purposes. For instance, Mrs. Bu Hun is a cow and pig breeder, and as the animals grow bigger, she lacks sufficient money to buy food for them; she therefore is requesting a loan to buy grass and pig food for her animals. Aside from this business, she is a farmer who cultivates rice and vegetables while her husband, Mr. Mich Hun, assists her in order to improve their living conditions together.

Mrs. Bu Hun is 50 years old and the mother of seven children, one of whom is a farmer while another two are employed in a garment factory. Another is an electrician while the remaining three are attending high school.

This is a village bank loan consisting mainly of end-of-term loans. Eight members have end-of-term loans and the rest have monthly payment loans. Group members 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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