Twenty members in Slab Ta Aon Village in Kandal Province formed a village bank loan, and they plan to use the loan for different purposes. Mrs. Chheang S., the village bank president, is a garment worker who makes $55 per month. She is 28 years old and the mother of two children, aged 5 and 2. Her monthly income is a small amount to support her family. Her husband, Mr. Sreng Chamroeun, is a construction worker who earns $4 per day, which goes toward paying the family's expenses.
Mr. Sreng Chamroeun's business now faces a small problem because he does not have enough construction materials to build the houses for his customers. Mrs. Chheang S. requests a loan to buy construction materials for her husband's business.
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.