Channy Sokh Group
Their business ventures, which they funded using their existing loan, have failed, putting them in a very unfortunate position. In addition, less work at garment factories and sickness in their families have drastically reduced other sources of income for each family. All six clients will use their loan to start a new business making T-shirts.
As part of AMK’s workout program, each client is given a workout loan that will be used to purchase sewing machines, an electricity line and additional sewing equipment. AMK has hired a tailor to train the group to make T-shirts. The material will be provided by AMK to ensure that quality material is used and so that the clients do not have to purchase it themselves.
AMK has partnered with Ahkun.org to sell their T-shirts online. Fifty percent of all profits will go to this group and the other borrowers in their village who are unable to repay their loan.
This program is in contrast to the traditional ways that microfinance institutions deal with delinquent clients:
• By rescheduling the loan and pushing off the problem to another day
• Repossessing items that the clients own, including their house or land.
Because of AMK’s strong social mission, AMK has created this program to provide an alternative solution to one of microfinance’s dark sides. We hope that Kiva Lenders will support us in this initiative.
All six clients of this group have had previous loans on Kiva:
About AMKAngkor Microfinance Kampuchea (AMK) is a leading microfinance institution in Cambodia with a wide reach of operations. AMK works with over 6,000 villages and serves clients in every Cambodian province. With an average loan size of US$115, AMK’s focus is to provide credit and savings products to the very poor in rural areas. For more information, please visit AMK's website.
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.
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Success!! The loan was 100% repaid