Fifteen people in the Trapeang Chaeng village in the Takeo province in Cambodia, make up the village bank group loan and all the members plan to use the loan for different purposes. Mrs. P. AU. is the village bank president. She is 29 years old and the mother of six children; three children are employed in a garment factory, two attend the local school, and the youngest is 4 years old.
Mrs. P. AU. has 1.5 hectares on which she grows rice and earns a living. She is also a pig breeder. This business is going well, and she is requesting a loan to buy more piglets for breeding. Her husband, Mr. Keo Vorn, is a construction worker, and earns a small income that helps support his family.
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.