Mrs. Poen Eth's Village Bank Group

Mrs. Poen Eth's Village Bank and its members are located in Peareach Village in Kampong Chhnang Province.Mrs. Peon Eth, president of the village bank, is a 40-year-old widow with four children, two of whom are employed in a garment factory while the remaining two are enrolled in the local school. She owns a small plot of land on which she can cultivate rice for a living. In her plantation, she now faces an obstacle because the soil is infertile and has led to declining crop yields. To deal with this problem, Mrs. Peon Eth has decided to ask for a loan to buy fertilizers to better support the field.

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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