Thirty-one people, living in Tuol Khsach village in Kampong Cham province, comprise this village bank loan, and they will use the loan for various purposes. Mrs. Leang S., the 49-year-old village bank president, is a farmer who owns a piece of land to cultivate rice. Aside from this plantation, she is a grocer who owns a small grocery store in the local village. She does not have enough money to purchase more grocery goods. Thus, she decided to ask for a loan for this purpose. Mrs. Leang S. is a widow with five children, one of whom is employed in a garment factory, and three are attending the local school. The remaining is too young to work or study. Mr. Oark P. could not come to take a loan but his wife did, so she is presented in the picture. Mrs. Chea Tim, who is a group guaranteer, is also presented in the picture with the village bank members.
Twenty-seven members in this group have loans that are end-of-term, and the rest have monthly payment loans. They 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 them to repay portions of the principal whenever they are financially able to do so. 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 loans.
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.