Mrs. Lam Chhun Village Bank Group

Fifteen people living in Toek Hout village in Kampong Chhnang province comprise this village bank loan, and they will use the loan for various purposes. Mrs. Lam Chhun, the 61-year-old village bank president, is a farmer who owns a plot of land for cultivating rice. In this plantation, she faces two problems because her field is infertile and she does not have enough money to buy fuel to support a pump for watering the field. In order to deal with these problems, Mrs. Lam Chhun decided to ask for a loan to purchase fertilizer and fuel. She hopes to increase her income and improve her family's living situation. She is a widow with two children, one of whom is employed in a garment factory while the other is a farmer helping on the mother's plantation.

All the members in this loan group are end-of-term loans so they are not required to pay any principal on the loan until the very end of the loan's 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 their payments many months before the end of the loan term. Almost all of AMK’s client 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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