Mrs. Chheum Sokha Village Bank Group

Twenty-two people in Trapeang Phnov village in Kampong Cham province have formed the village bank loan and they each plan to use the loan for a different purpose. Mrs. Chheum Sokha is the village bank president who has been selected by the members. She owns a small grocery store in the local village. Since her business is going well, she wants to expand it, so she decided to ask for a loan to buy more grocery goods for her inventory. Her husband, Mr. Nuon Mengsrun, is a village chef who makes a small salary to support his family. Mrs. Chheum Sokha is 33 years old and the mother of two children who are both attending school.

Two men among the three in the picture came to take the loan instead of their wives so they are presented here.

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