Mr. Phearak Pang Village Bank Group

Mr. Phearak Pang is the group's leader. He is a 23-year-old fisherman who is unable to catch fish because he does not have enough fishing equipment. To address this problem, Mr. Phearak Pang is seeking a loan to buy a new boat and fish nets to re-start his business. His wife, Mrs. Chhoeurn Nary, is employed in a garment factory, and she earns a small salary to support their household. They have a 1-year-old child who is too young to work or study.

In practice, this is a group loan, but the loans are structured in two ways: four members are seeking end-of-term loans, while the rest of the group's members would like monthly payment loans. With respect to the end-of-term loans, the borrowers are not required to repay any principal on the loan until the very end of the loan term. Notably, end-of-term loans are AMK's main product because they are the most beneficial to Cambodia's poor population. Specifically, such loans allow borrowers to repay portions of the principal whenever they are financially able to do so. Even so, most clients start to make payments many months before the end of the loan term, and nearly all of AMK's clients make their payments on time. In fact, AMK has a delinquency rate of only 0.09%, and AMK has a default rate of 0% on Kiva loans.



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