This village bank group consists of 16 members in Trapang Krapue village in Kampong Chhnang province, Cambodia. The members plan to use the loan for various purposes. Mr. Sok T. was elected by the members to be the village bank president. He is a farmer who owns a piece of land to cultivate rice, but his field is infertile. In order to solve this problem, he decided to ask for a loan to buy fertilizer and and the fuel needed to run an irrigation pump. His wife, Mrs. Huot Lis, is a mat maker. Mr. Sok T. is 58 years old and the father of four children, three of whom are construction workers while the youngest attends 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.