This village bank loA., which consists of 23 people, is located in Koek Romiet village in Kandal province, and all members will use the loA. for different purposes. Mrs. YouE. A. is a village bank president who has been selected by the members. She is a farmer who owns a small piece of land for cultivating vegetables to earn her living. In this farm, she faces a small problem: she does not have enough vegetable seeds to cultivate. She has decided to ask for a loA. to buy these seeds. Her husband, Mr. Chhit Lin, helps her in her farm. Mrs. YouE. A. is 58 years old and the mother of a child who is employed in a garment factory.
This is a village bank loA. consisting of mainly end-of-term loans. Nineteen members have end-of-term loans, and the rest have monthly payment loans. Group members are not required to pay any principal on the loA. until the very end of the loA. term. End-of-term (EoT) loans are AMK’s main product because it offers the most benefit to Cambodia’s poor. It allows tH. 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 loA. 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.