Mrs. Chhorn Chhoeurn's Village Bank Group

Mrs. Chhorn Chhoeurn's Village Bank consists of seventeen members living in Peareach Village in Kampong Chhnang Province. Each member will use their loan for different purposes.

Mrs. Chhorn Chhoeurn is the president of the bank and leader of this loan group. She is 24 years old and the mother of two children who both attend the local school. Mrs. Chhorn Chhoeurn owns a small plot land where she can cultivate rice for a living. Her husband, Mr. Chor Vy, has a small kiln in which he can produce coal to sell. In this business, he now faces a small obstacle because he cannot transport wood in order to make coal. Thus, his wife, Mrs. Chhorn Chhoeurn, decided to ask for a loan to buy a cow cart to help with transport.

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. 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 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 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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