Twelve people who live in Preaek Pang village in Kandal Province have formed this village bank loan. All the members will use the loans which they obtained for different purposes. Mr. Moa U. is a village bank president who has been selected by the members. He is farmer who has a small piece of land to cultivate rice for a living. On his farm, he now faces a small problem because his field has infertile soil which is affecting the crop. Thus, he decided to ask for a loan to buy fertilizers to support the field. He will use the rest of the loan to buy fuel to support the field to make his crop more productive. His wife, Mrs. Lis Pong, is a recycling collector who buys waste such as empty bottles, cans, plastic and so on to re-sell in a recycling factory. Mr. Moa U. is 35 years old and the father of five children, two of whom are recycling collectors while two others help him in farming and the youngest one is attending the local school. Another loan member, Mr. Khorn K. did not come to take a loan but his wife did, so she is presented in the picture instead him.
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.