Eleven people in the Trapeang Chaeng village in the Takeo province in Cambodia have applied for a group loan. Mrs. Seu S. was selected by the members to be the group leader and bank president. Mrs. Seu S. is 45 years old and the mother of three children; two children are construction workers, and the youngest is enrolled in the local school. She is a pig breeder, but her pig is ill. To solve this problem, Mrs. Seu S. is requesting a loan to buy medicine to cure her pig. Her husband, Mr. Sin Pov, is a farmer and owns 1.2-hectare, which he cultivates to earn an income.
This group loan consists of requests for a variety of businesses for the group members.
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.