The Village Bank, which is located in Kandal Leu Village in Kandal Province, consists of 34 members. Each person plans to use the loan for different purposes. Mrs. Meng Y. is the village bank president, and she owns a grocery store in the local market. Her husband, Mr. Suong Hi, is a farmer who has a two-hectare field where he cultivates rice. Aside from this business, he is a fisherman but he does not have enough fishing tools to gather fish to support his family. To solve this problem, Mrs. Meng Y. decided to ask for a loan to buy more fishnets and fish lines to catch more fish so they can meet the needs of their family. Mrs. Meng Y. is 41 years old and the mother of five children, two of whom are employed in a garment factory while the others are attending the local school.
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.