Twenty people who all live in Kampong Pou village in Kandal province form this village bank. They will use the loan for a variety of purposes. Mrs. Seakheng C. is the village bank president. She and her husband, Mr. Phal Phat, are farmers who own a small piece of land where they cultivate rice. They now face an obstacle because they do not have enough money to grow rice durI. the dry season. Thus, Mrs. Seakheng C. decided to request a loan to cultivate rice. She hopes to increase their income and improve their livI. conditions with this loan. She is 42 years old and the mother of four children, one of whom is employed in a garment factory while another is a fisherman and the others are enrolled in the local school.
Two members in this group loans have end-of-term loans and the rest have monthly payment loans. The EoT borrowers 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 it is the most beneficial to Cambodia’s poor. It allows thE. 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 AMK has 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.