Mrs. Rat Loeng Village Bank Group

Twenty-two people living in Ta Daol Bei village in Kandal province comprise this village bank group loan; they will use the loan for various purposes. Mrs. Rat Loeng is the village bank president. She is employed in a garment factory. Her husband, Mr. Touch Ty, is a fish seller in the local market. Since his business is doing well, he wants to expand it. Thus, Mrs. Rat Loeng decided to ask for a loan to purchase more fish for her husband’s business to earn more income to support her family. She has three children; one is enrolled in the local school and the others are too young to work or study.

One member in this group has an end-of-term loan 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

Subscribe