Mrs. Phum Pheng's Village Bank Group

Mrs. Phum Pheng's Village Bank has 14 members and each will use their loan for different purposes. The members live in Peareach Village in Kampong Chhnang Province. Mrs. Phun Pheng, president of the village bank and leader of this loan group, owns a small grocery store in the local market. Her husband, Mr. Oak Sam Art, is a farmer who now faces a small problem because his plantation field has infertile soil which has reduced crop yields. In order to solve this problem, Mrs. Phun Pheng decided to ask for a loan to buy fertilizers for the field. Mrs. Phun Pheng is 28 years old and does not have children.

This is a village bank loan consisting of mainly end-of-term loans. Six 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. 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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