Mr. Reth To Village Bank Group

This village bank which consists of thirteen members is located in Kouk Trab village in Kandal province, and they plan to use the loan which they obtained for different purposes. Mr. Reth To is the village bank president who has been selected by the members. He is a palm juice collector who gathers juice to process into palm sugar or wine. In his business, he faces an obstacle because he does not have enough bamboos to support his business. Thus, he decided to ask for a loan to purchase more bamboos to tie to the palm trees in order to climb up to gather juice. His wife, Mrs. Phun Sok Khan, sells palm sugar. Mr. Reth To is 48 years old and the father of four children, one of whom is employed in a garment factory while another sells ice-cream and the others are enrolled in the local school.

One member in this group loan has an end-of-term loan and the rest have monthly payment loans. The EoT loans 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

Subscribe