Mrs. Chhuon Bun Chhoeurn's Village Bank Group

Fourteen members form this village bank [solidarity group] in Choeung Khnar Village in Kampong Chhnang Province. They plan to use the loan for different purposes. Mrs. Chhuon Bun Chhoeurn is the village bank president and owns a small restaurant where she can sell Chinese noodle and rice soup to the villagers and passersby. Because this business is going well, she wants to expand it; so she decided to ask for a loan to buy more ingredients in order to cook the delicious food for her customers. Her husband, Mr. Seng Sophally, helps her when he has free time from his motorbike taxi business. Mrs. Chhuon Bun Chhoeurn is 52 years old and the mother of four children. Two of the children assist with their mother’s business, while the remaining two are attending the local school.

Mr. Phan Sileap did not come to take out his loan, but his wife did and is presented in the photo.

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. 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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