Mrs. Soen On Village Bank Group

Mrs. Soen On is a village bank president and she is a grocer. Since she has a lot of customers with high demand, she decided to ask for a loan to buy more grocery goods for her inventory and she hopes to increase her income with this new loan. Her husband, Mr. Phorn Nhock, helps her in the current business. Mrs. Soen On is 40 years old and the mother of a child who is working in a garment factory.

This is a village bank loan consisting of some end-of-term loans. Five members have end-of-term loans and the rest have monthly payment loans. Group 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 it is the most beneficial to Cambodia's poor. It allows them to repay portions of the principal whenever they are financially able. 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 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