Ten people living in Anlong Romeit Choeng Village in Kandal Province comprise this village bank loan, and they will use the loan for various purposes. For example, Mrs. Phalla C., the 44-year-old village bank president, owns a small grocery store in the local village. Since her business is doing well, she wants to expand it by purchasing more grocery goods, hoping to increase income and improve family living conditions with this loan. Her husband, Mr. Touch Sokea, is a wedding chef who has been hired by villagers to cook for wedding ceremonies, parties, etc. They have three children, two of whom are attending the local school.
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.