Nineteen people who all live in Tep Archun village in Kandal province make up the village bank loan. Mrs. Chanthy S. is the village bank president who has been selected by the members. She and her husband, Mr. Chhoeurn Sovann, are vegetable sellers in the local market. Aside from this business, they are farmers who grow corn on a small plot of land. In this farming, they now face a small problem because they do not have enough money to buy corn seeds to cultivate. In order to deal with this problem, Mrs. Chanthy S. decided to ask for a loan to buy corn seeds. She is 44 years old and the mother of three children, one of whom is a laborer, while the remaining two 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.