Mr. Phallin Hak Village Bank Group

The village bank loan group, consisting of 13 people, is based in the Boeng Krum Kraom Village in Kandal Province. Mr. Phallin Hak, 28 years old, is the president of the group and earns income driving a Tuk Tuk. His wife, Mrs. Phan Saron, is a garment factory worker. Unfortunately, Mr. Phallin Hak's business currently does not ensure enough income, because the motorbike needs to be repaired. He is therefore asking for a loan to be able to improve his business by fixing the motorbike.
Village bank loans are mainly end-of-term loans. Three members have end-of-term loans, while others 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, allowing 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 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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