Mrs. Sok Sareth Village Bank Group

The Village Bank, located in Kong Chey Village, consists of eighteen people who plan to use the loan for different purposes. Mrs. Sok Sareth has been selected by the members as the village bank president. She is 47 years old, and the mother of two children who attend the local school. She is a farmer who owns a one hectare rice field. She faces a small problem in her plantation, because her field is now infertile. In order to solve this problem, Mrs. Sok Sareth is requesting a loan to buy fertilizers in order to make her field and crops more productive. Her husband, Mr. Taing Than, is a teacher who earns roughly $50 per month, but this is not enough income to support their family.

This is a village bank loan consisting mainly of end-of-term loans. Four members have end-of-term loans, and the rest have monthly payment loans. End-of-term (EoT) loans are AMK's main product, because they are the most beneficial to Cambodia's poor. This type of loan allows them to repay portions of the principal whenever they are financially able to do so. These members are not required to pay any principal on the loan until the very end of the loan term; but 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 0% default rate on Kiva loans.




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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