Mrs. Pov Choek Village Bank Group

The village bank loan group in the Andoung Russey Village in Kampong Chhnang Province consists of 8 people who all plan to use their loan share for different purposes. Mrs. Pov Choek, 29 years old, is widowed and has two children, both of whom attend a local school. She is the president of the loan group and earns income breeding pigs. Her business is going well, and she would like to expand it. Therefore, Mrs. Pov Choek is asking for a loan to buy additional piglets for her business, thereby hopefully increasing her income.
This is a village bank loan, mainly consisting of end-of-term (EoT) loans. Five members of the group have EoT loans, while 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. 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, and 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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