Mrs. Lun Phoung Village Bank Group

Ten people living in Tropaing Mortes village in Kampong Chhnang province comprise this village bank loan, and they will use the loan for various purposes. Mrs. Lun Phoung, the 53-year-old village bank president, is a farmer who owns a piece of land for cultivating rice. Aside from this plantation, she is a rice middleman. Since her business is doing well, she wants to expand it. Thus, she decided to ask for a loan to add to her savings to buy more rice to earn income. Mrs. Lun Phoung is a widow with two children, one of whom is employed in a garment factory while the other is attending the local school.

Two members in this loans group 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. 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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