Mrs. Oem Sarad's Village Bank Group

This group of nine people is located in Trapang Rang Village in Kampong Chhnang Province and the members will use the loan for various purposes. Mrs. Oem Sarad was selected as the group leader; she is currently in the business of selling clothes. In her business, she sells all kinds of clothes, especially those for the young generation. Since this business is going well, she wants to expand it and has decided to ask for a loan to purchase more fashion clothes to re-sell. Her husband, Mr. Hoeng Sok, helps her in the business. Mrs. Oem Sarad is 46 years old and the mother of seven children, one of whom is employed in a garment factory while another one is a construction worker. The remaining five children attend the local school.

This is a village bank loan consisting of mainly end-of-term loans. Seven members have end-of-term loans and the rest have monthly payment loans. 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. 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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