Mrs. Khek Chea's Village Bank Group

Eleven people in Sre Sa Village in Kampong Chhnang Province make up this village bank loan. They each plan to use the loan for different purposes. Mrs. Khek Chea is the village bank president and is a farmer who owns a hectare to cultivate rice. Her husband, Mr. Vong Sean, is a construction worker and firewood seller. Because the second business is going well, he wants to expand it; so his wife decided to ask for a loan to buy more firewood to re-sell to the customers. Mrs. Khek Chea is 59 years old and the mother of five children. Two of the children are construction workers, while another is a farmer. The remaining two are attending the local school.

Mr. Nuon Yon’s wife came to take out the loan for her husband, so she is presented in the picture.

This is a village bank loan consisting of mainly end-of-term loans. Three 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 (Kiva’s Field Partner) has a delinquency rate of only 0.09% and 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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