Mr. Sarun Um Village Bank Group

This is a village bank loan to a group that consists of ten people in Phum Ty village in Kampong Chhnang province. Mr. Sarun Um is the village bank president. He is a vice village chief who makes a little salary. His wife, Mrs. Khun Chanda, is a farmer who owns a small piece of land to cultivate rice to earn a living. Aside from the plantation, she is a rice middleman who buys rice to keep in stock and then resell later at a better price. Since this business is going well, she wants to expand it, so Mr. Sarun Um decided to ask for a loan to buy more rice to keep in stock. Mr. Sarun Um is 46 years old and the father of three children who all attend the local school.

Two members in this village bank loan have end-of-term loans, and the rest have monthly payment loans. The end-of-term 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. These allow people 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. 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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