Mrs. Chan Thavy's Group

Four people in Preak Daung Village in Kandal Province have formed a loan group and Mrs. Chan Thavy is the group leader. She and her husband, Mr. Loth Chhaing, are fishermen from the local village. They have six children, five of whom are attending school while the youngest one is too young to work or study because that child is three years old.

In the village, most of the houses are connected to electricity but Mrs. Chan Thavy's is disconnected because she does not have enough money to afford to pay the fee every month. In order to light her house, Mrs. Chan Thavy wants to use the old system which uses a battery that generates electricity. Thus, Mrs. Chan Thavy decided to ask for a loan to buy a battery and a lamp for this purpose.

Two members have end-of-term loans and the rest have monthly payment loans. Two 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. 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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