Mrs. Out Saron's Village Bank Group

This village bank loan is located in Tro Ngel Village in Kampong Chhnang Province and consists of ten people. They plan to use the loan for different purposes. Mrs. Uot Saron, a farmer, was selected by the members as the village bank to be president. She cultivates rice on a 5-hectar field. Her field is far from irrigation sources so it is very difficult for her to water her crop without a pump. Mrs. Uot Saron is requesting a loan to purchase fuel for her pump that is used to water her crop. Her husband, Kung Sambean, helps her on the plantation. Mrs. Uot Saron is 54 years old and the mother of two children who both help their parents on the plantation.

This is a village bank loan consisting of mainly end-of-term loans. Eight 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. 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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