Mrs. Kim Hong Heng Village Bank Group

Mrs. Kim Hong Heng is a village bank group president of nineteen people, who all live in Phum Saeprammuoy village, in Kampong Cham province. Each member of the group plans to use the loan, which they obtained, for a different purpose. For instance, Mrs. Kim Hong Heng is requesting a loan to buy grocery products to increase her inventory. Her husband, Mr. Suon Sarorn, is a construction worker who earns a small income, barely enough to support the family. Aside from this business, he is a cow breeder. Mrs. Kim Hong Heng is 46 years old and the mother of five children, one is employed at a garment factory, while the remaining four are construction workers.
One member in this village bank loan is an end-of-term loan, and the other members have monthly payment loans. This client is 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% with 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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