The village bank loan in Krang Leav Village in Kampong Chhnang Province consists of eighteen people. They plan to use the loan for different purposes. Mrs. Prak S. A. is the village bank president, and she is a fruit seller in the local market. Aside from this business, she is a pig breeder. Since this business is going well, she wants to expand it, S. she decided to ask for a loan to buy two more pigs for breeding. Her husband, Mr. Thon Thuren, is a construction worker who can make a small income to support his family. Mrs. Prak S. A. is 50 years old and the mother of two children, one of whom sells firewood and another, the youngest, attends the local school. Mrs. Hem Chantha is a group guarantor and is alS. presented in the picture. All of the members are shown in the picture but two of them are blocked.
This is a village bank loan consisting of mainly end-of-term loans. Seventeen members have end-of-term loans and the rest have monthly payment loans. Group 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. The EoT loans allow them to repay portions of the principal whenever they are financially able. Most clients stA. to make payments many months before the end of the loan term. Almost all of AMK's clients make their payments on time.
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.