This is a village bank loan to a group that consists of ten people in PhU. Ty village in Kampong Chhnang province. Mr. Sarun U. is the village bank president. He is a vice village chief who makes a little salary. His wife, Mrs. Khun Chanda, is a farmer who owns a small piece of land to cultivate rice to earn a living. Aside from the plantation, she is a rice middleman who buys rice to keep in stock and then resell later at a better price. Since this business is going well, she wants to expand it, so Mr. Sarun U. decided to ask for a loan to buy more rice to keep in stock. Mr. Sarun U. is 46 years old and the father of three children who all attend the local school.
Two members in this village bank loan have end-of-term loans, and the rest have monthly payment loans. The end-of-term members 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 they are the most beneficial to Cambodia’s poor. These allow people 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 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.