Mrs. Chroeb E. is the president of a village bank of twelve people who all live in Toeuk Chenh Village in Kampong Chhnang Province. All the members will use the loan for different purposes. Mrs. Chroeb E. is a basket maker and seller who can make a small income to support her family. Her husband, Mr. Chuon Pov, is a traditional musician who plays the music during wedding ceremonies, funerals, and parties. Although Mrs. Chroeb E. and her husband try to work hard, they still live in poor conditions and in an old house. In order to improve their standard of living, Mrs. Chroeb E. decided to ask for a loan to build a new house for her family. Mrs. Chroeb E. is 32 years old and the mother of five childrE., four of whom are attending the local school while the youngest one is just two years old. Mrs. Thuo S. does not come to take a loan but her husband is, so he is presented in the picture instead of his wife.
This is a village bank loan consisting of mainly end-of-term loans. SevE. 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. AMK has a delinquency rate of only 0.09% and AMK has a default rate of 0% on Kiva.
About AMKAngkor 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.
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Success!! The loan was 100% repaid