Fifteen people in S. Raong village in Takeo Province, Cambodia, have formed a village bank loan group. Mrs. S. Art E. is the village bank president. She sells Prohok (crushed, salted and fermented fish paste, usually of mud fish, that is used in Cambodian cuisine as a seasoning) in the local market. Her husband, Mr. C. Dol, is a farmer who owns a plot of land to cultivate rice. He is also a successful duck breeder and he wants to expand this business. Thus, Mrs. S. Art E. decided to request a loan to buy more ducklings and duck food to support them. She hopes to increase income and improve her living conditions with this loan. She is a 35-year-old mother of four children, three of whom are enrolled in the local school while the other is too young to work or study.
Mr. Saroeurn B. does not come to take a loan but his wife is, so she is presented in the picture instead of her husband.
This is a village bank loan consisting of mainly end-of-term loans. Fourteen members have end-of-term loans and the rest 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. It allows them 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.
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.