Mr. Chen Bou Village Bank Group

Eight people who live in Andoung Chros village, in Kampong Chhnang province, have formed a village bank loan group. Mr. Chen Bou is the village bank loan group president who has been selected by the members. He is a farmer who owns a small plot of land and cultivates rice to earn for living. His wife, Mrs. Khum Lay, works in a garment factory and contributes a small salary to the support of the family. Although they work hard, they still cannot support the family well. In order to improve their living conditions, Mr. Chen Bou decided to ask for a loan to buy a cow to start a breeding business. Mr. Chen Bou is 29 years old and the father of two children who attend the local school. Mr. Chen Bou's wife is shown in the picture.

Two members in this village bank loan are end-of-term loans and the rest have monthly payment loans. They 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 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

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