Mrs. Pol Sarum's Village Bank Group

This village bank [solidarity group] consists of twenty people and is located in Krang Leav Village in Kampong Chhnang Province. Mrs. Pol Sarum is the village bank president, who has been selected by its members. She is a firewood seller who can make a small income to support her household. Aside from this business, she is a farmer. Currently she cannot cultivate her rice plantation because she does not have enough animals to plow the field. Thus, she decided to ask for a loan to buy one more cow to help the old one plow her field. Her husband, Mr. Ung Phang, is a construction worker who can earn less income to meet the family expenses. Mrs. Pol Sarum is 42 years old and the mother of two children, who are both attending the local school. All the members are presented in the picture, but some of them are being blocked.

All the members in this group loan have end-of-term loans, and they 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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