Mrs. Lun Soem Village Bank Group

Twenty two people living in Preaek Doung village in Kandal province comprise this village bank loan, and they will use the loan for various purposes. Mrs. Lun Soem, 42, is the president of the village bank. She is a farmer who cultivates rice on a small plot of land. Her farming business is currently facing some difficulties, in particular, due to the low fertility of the soil which badly affects the crops. To increase the productivity of the rice field, she has decided to take out a loan to buy fertilizers, as well as to hire laborers to work on the field.

One member in this village bank group will have an end-of-term loan, while the others will be making monthly payments. 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, being the most beneficial to Cambodia’s poor, since 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. 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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