Mrs. Rat Seang Village Bank Group

15 people living in the Tropang Tonlorb village in Kampong Chhnang province have formed a village bank loan group, and Mrs. Rat Seang is the village bank president. She is a farmer who owns a one-hectar field to cultivate rice. Her husband, Mr. Meach Thun, is a palm juice collector. Unfortunately, they currently do not earn enough income to provide a good life for their family. In order to improve their living, Mrs. Rat Seang decided to request a loan to buy a piglet to start breeding pigs. She is 35 years old and the mother of four children, three of whom are enrolled in the local school. The youngest child is too young to work or study.

10 members in this group have end-of-term loans; the remaining 5 members have monthly payments loans. Borrowers with end-of-term 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 they are 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, and 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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