Mrs. Sok Yin's Village Bank Group

Sixteen people in Trapeang Anchan Village in Kampong Chhnang Province have formed a village bank loan group. Each member plans to use the loan for a different purpose.

Mrs. Sok Yin, the village bank president, owns a small store where she sells rice soup to villagers and passers-by. Her business is going well and she wants to expand it, so she has decided to ask for a loan to buy more rice and other ingredients used to cook delicious rice soup for her customers.

Her husband, Mr. Phin Veoun, has a plot of land where he cultivates rice for a living. Mrs. Sok Yin is 43 years old and the mother of four children, two of whom are employed in a garment factory. The others are attending the local school.

One of the members of this village loan group has an end-of-term loan. The rest have monthly payment loans. The member with the end-of-term loan is 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 they are the most beneficial to Cambodia's poor. The terms allow 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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