Mr. Vuthea Chan Village Bank Group

This village bank, which consists of ten members, is located in Lor village in Kampong Chhnang province and they plan to use the loan they obtain for different purposes. Mr. Vuthea Chan is the village bank president who has been selected by the members. He is a motor taxi driver. Aside from this career, he is a farmer who owns a plot of land for cultivating both rice and vegetables. In his cultivating of vegetables, he faces an obstacle because he does not have enough money to buy watermelon seeds and fertilizer to support the field to make his crop more productive. Thus, he decided to ask for a loan for these purposes. His wife, Mrs. Hoeun Sokny, is employed in a garment factory. Mr. Vuthea Chan is 22 years old and the father of two children who are too young to work or study.

Nine 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

Subscribe