Mrs. Oeurn Sun Village Bank Group

Ten people in Kroay Wat village in Kampong Chhnang Province have formed a village bank loan group.

Mrs. Oeurn Sun is the village bank president. She is a Khmer noodle maker and she sells her noodles in the local market. Her husband, Mr. Phart Sak, is a farmer who owns a plot of land on which he cultivates rice and breeds cows. Since his breeding business is doing well, he wants to expand it. Thus, Mrs. Oeurn Sun has decided to ask for a loan to buy a calf for her husband's business. She is 49 years old and the mother of three children, one of whom is a firewood collector; the others attend the local school.

This is a group loan that includes end-of-term (EoT) loans. Two members have end-of-term loans and the rest of have monthly-payment loans. The members with EoT loans 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 to. Most clients start to make their payments many months before the end of the loan term. Almost all of AMK’s client 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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