Twenty-two people who live in Phum Saeprammuoy village in Kampong Cham province have formed the village bank loan group. Each of the members will use the loan fO. a different purpose. Mrs. Samon C. is the village bank group president who was selected by the members. She is a farmer, who owns a plot of land and cultivates rice fO. a living. Her husband, Mr. Nhen Chhean, is a construction worker who does not earn sufficient income to support the family. Although Mrs. Samon C. and her husband work hard, they still live in poO. conditions. In order to improve these living conditions, Mrs. Samon C. decided to request a loan to buy a cow and start a breeding business. She hopes to increase her income to provide a better life fO. her family. Mrs. Samon C. is 40 years old and the mother of two children who attend 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.