Mrs. Sothy K. is a group leader of five who all live in Veal Thom village in Kandal province. She owns a small restaurant where she sells Chinese noodles to the villagers and the passengers. Since this business is going well, she wants to expand it, so she decided to ask for a loan to buy more ingredients to make noodles for her customers. Her husband, Mr. Chea Sok, is a construction worker who makes a small income to support the family. Mrs. Sothy K. is 43 years old and the mother of five children, four of whom are enrolled in the local school while the youngest is too young to work or study.
Mrs. Sothy K. will share this loan with the other members of her group.
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.