Mrs. Tom Mil Village Bank Group

This village bank loan, which consists of nine people, is located in Hang Chhouk village in the Kampong Chhnang province. All of the members will use this loan for different purposes. Mrs. Tom Mil is a village bank president who has been selected by the members. She and her husband, Mr. Kham Sophal, are farmers who own a small piece of land and cultivates rice. The plantation has been yielding a smaller crop due to the infertile soil. To rectify with this problem, Mrs. Tom Mil has decided to request a loan to buy fertilizers to support the field and make her crop more productive. Mrs. Tom Mil is 41 years old and the mother of six children two of whom are employed in a garment factory, three are attending the local school and the youngest one is only five years old.

Seven members in this village bank loan 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