Fourteen people living in Preaek Doung village in Kandal province comprise this village bank loan, and they will use the loan for various purposes. Mr. Meng T. is the 49 year old village bank president. He and his wife, M.. Chhun Bunthon, are cooks who are hired to cook at wedding ceremonies, festival ceremonies, parties, etc. This couple has eleven children, two of whom are employed in a garment factory while two others are laborers at pig breeding businesses. Four are attending the local school and the remaining stay at home because they are too young to work or study. Mr. Meng T. is requesting a loan to buy sugar cane to make juice and start a business to earn more income.
Six members in this group loan are end-of-term loans and the rest have monthly payment loans. Those who have end-of-term loans 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. 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.