This village bank, which consists of eighteen members, is located in Kruos village in Takeo Province. The members plan to use the loan for various purposes. Mrs. Phan C. is the village bank president, selected by the members. She is a 33-year-old mother of four children who attend the local school. Mrs. Phan C. is a mat weaver. Her husband, Mr. Chhorn Thoeun, is a farmer who owns a plot of land where he cultivates rice to earn a living. He faces a small problem because his field is insufficiently fertile to support his crop. Thus, they decided to request a loan to buy fertilizer.
This is a group loan consisting of mainly end-of-term loans. These loans do not require any principal repayment 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 loans allow borrowers to repay portions of the principal whenever they are financially able to do so. Most clients start to make their payments many months before the end of the loan term. Almost all of AMK’s client make their payments on time. AMK has an overall delinquency rate of only 0.09% and AMK has 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.