Mrs. Pao Uy Village Bank Group

Fourteen people in Damnak Khey village in Kampong Chhnang province have formed a village bank loan and Mrs. Pao Uy is the village bank president. She makes baskets to sell in the local market. Aside from this business, she is a farmer who owns a plot of land to cultivate rice. In this plantation, she faces a problem because she does not have rice seed for growing on the field. Thus, Mrs. Pao Uy decided to request a loan to buy rice seeds for cultivation. She is a 29-year-old widow with four children, three of whom are enrolled in the local school while the youngest is too young to work or study.

Eight members in this group loan are end-of-term 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.




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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