Mrs. Ban Sok's Village Bank Group

Fourteen people in Chrolong Village in Kampong Chhnang Province form a village bank [solidarity group]. The group members will use the loan in different ways. Mrs. Ban Sok is the village bank president, and she raises three pigs and four cows. Because her animals are growing very fast now and she does not have enough money to purchase more food to feed them, Mrs. Ban Sok decided to ask for a loan. Her husband, Mr. Kong Teng, helps his wife with the business. Mrs. Ban Sok is a 34-year-old woman without any children.

Mrs. Yin Gich La did not come to receive her loan. Her husband came for her instead, so he is presented in the picture.

This is a village bank loan consisting of mainly end-of-term loans. Ten members have end-of-term loans, and the rest have monthly payment loans. These 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 they are the most beneficial to Cambodia's poor. The product allows them to repay portions of the principal whenever they are financially able to do so. 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 [Kiva’s Field Partner] 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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