This village bank consists of eleven members, and is located in Svay Khoy village in Kampong Chhnang province. The group members plan to use the loan for different purposes. Mrs. SavR. P. was selected by the group to be the village bank president. She sells chickens in the market. Since her business has a lot of customers with many demands, she decided to ask for a loan to buy more chickens to resell. She hopes to increase her income and improve their living conditions with this loan. Her husband, Mr. Sorn P., sells water to the villagers for an income. Mrs. SavR. P. is a 28 year old mother of three children, one of whom is attending the local school while the others are too young to work or study because they are at the age of two and five years old.
This is a group loan. The loan funds will be distributed among the group members, each of whom will invest in her own business. The members mutually guarantee one another's loans. If one member does not repay, the other members are responsible.
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.