Mrs. Sophos Khon Village Bank Group

Mrs. Sophos Khon owns a small grocery store in the local market. Since this business is going well, she wants to expand it so she decided to ask for a loan to buy more grocery products for her inventory. Her husband, Mr. Khoem Sarin, is a motorbike repairer who can make a small income to support the family. Mrs. Sophos Khon is 39 years old and the mother of six children, two of whom are employed in a garment factory while the others are attending the local school.

This is a village bank loan consisting partly of end-of-term (EoT) loans. Three members have EoT loans and the rest have monthly payment loans. Those receiving EoT loans are not required to pay any principal on the loan until the very end of the loan term. Such loans are AMK's main product because they are the most beneficial to Cambodia's poor. EoT 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.




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