The village bank, which consists of ten people, is located in Ta Kret Village in Kampong Cham Province. Each member will use the loan for a different purpose. Mrs. Duch C. is the village bank president and she was born in 1961. She is a farmer who cultivates twice a year. During the rainy season, she cultivates rice while growing vegetables in the dry season. Her husband, Mr. Kem Touch, is a cow middleman who buys cows and re-sells them later at a better price. Since this business is going well, he wants to expand it, so his wife, Mrs. Duch C., decided to ask for a loan to buy more calves for breeding in order to re-sell. Mrs. Duch C. has five children, three of whom are employed in a garment factory, while the remaining two are attending school.
This village bank loan is an end-of-term loan and all the members 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 they are 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.
Angkor 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.