Mrs. Phatt Soth Village Bank Group

Thirteen people living in Krasang village in Kandal province comprise this village bank group, and they will use the loan for various purposes. Mrs. Phatt Soth is a 52-year-old village bank president. She is a farmer who owns a small piece of land used to cultivate rice. Her husband, Mr. Neang Hor, is a thresher who owns a threshing machine. In his business, he faces an obstacle because he does not have enough money to buy gasoline for his threshing machine. In order to deal with this problem, Mrs. Phatt Soth decided to ask for a loan for this purpose. She has two children; one works in a garment factory and one stays at home to do housework.

Nine members in this group have 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 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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