This is a group loan. The nine members of the group live in Svay Bakav village in Kampong Chhnang province. Mrs. Nub S. is a village bank president. She is 49 years old and the mother of five children. Three of her children work in a garment factory while the others attend the local school. She has 0.5 hectare plot on which she cultivates rice for a living. Unfortunately, her field is infertile. To rectify the problem, Mrs. Nub S. is requesting a loan to buy fertilizers to increase her crop yield. Her husband, Mr. H. S., helps her with the farm.
This is a village bank loan consisting of end-of-term loans. End-of-term (EoT) loans are AMK’s main loan type. Borrowers are not required to pay any principal on the loan until the very end of the loan term. Borrowers can repay portions of the principal earlier than the end of the term if they are financially able, which most clients tend to do. Almost all of AMK’s clients make their payments on time. AMK has a delinquency rate of only 0.09% and AMK has a default rate of 0% on Kiva loans.
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.