Mrs. Leang Met Village Bank Group

Sixteen people who live in Ra village in Kampong Chhnang province form a village bank loan. Mrs. Leang Met is the village bank president.

She is a rice middleman who buys rice to keep in stock and re-sell later at better price. Since her business is going well, she wants to expand it. Unfortunately, she does not have enough money to buy more rice. In order to solve this problem, she decided to ask for a loan to add to her capital to purchase more rice that she can then re-sell later. She hopes to increase her income and provide a better life for her children.

Her husband, Mr. Sum Tha, is a farmer who owns a plot of land to cultivate rice. He also is a policeman who can make a small salary to support the family. Mrs. Leang Met is 28-years-old and the mother of six children who are attending the local school.

This is a group loan consisting of mainly end-of-term loans. Three members have end-of-term loan and the rest of have monthly payment loans. These three members 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 they are 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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