The village bank loan group, consisting of 13 people, is based in the Boeng Krum Kraom Village in Kandal Province. Mr. Phallin H., 28 years old, is the president of the group and earns income driving a Tuk Tuk. His wife, Mrs. Phan Saron, is a garment factory worker. Unfortunately, Mr. Phallin H.'s business currently does not ensure enough income, because the motorbike needs to be repaired. He is therefore asking for a loan to be able to improve his business by fixing the motorbike.
Village bank loans are mainly end-of-term loans. Three members have end-of-term loans, while others have monthly payment loans. They 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 it is the most beneficial to Cambodia’s poor, allowing thE. to repay portions of the principal whenever they are financially able to. Most clients start to make payments many months before the end of the loan term. Almost all of AMK’s clients make their payments on time. AMK has a delinquency rate of only 0.09% and a default rate of 0% on Kiva.
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.