This village bank loan group consists of nine people and is located in Trea Village in Kampong Chhnang Province. All the members will use the loan which they have obtained for different purposes. Mrs. Vy K. is the village bank president. She is a farmer who owns a small piece of land where she cultivates rice to earn her living. Her husband, Mr. C. Chit, is a palm juice collector who gathers juice to process into palm sugar and palm wine. In this business, he now faces a problem because he does not have enough equipment. Thus, Mrs. Vy K. decided to ask for a loan to buy bamboo to tie to the palm trees in order to climb up to gather juice. Mrs. Vy K. is 50 years old and the mother of four children, two of whom are construction workers while the remaining two are attending the local school.
One member in this village bank loan is an end-of-term borrower and the rest have monthly payment loans. The EoT borrower is 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 sT. 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.
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.