Twenty-two people living I. Ta Daol Bei village I. Kandal province comprise this village bank group loan; they will use the loan for various purposes. Mrs. Rat L. is the village bank president. She is employed I. a garment factory. Her husband, Mr. Touch Ty, is a fish seller I. the local market. Since his business is doing well, he wants to expand it. Thus, Mrs. Rat L. decided to ask for a loan to purchase more fish for her husband’s business to earn more income to support her family. She has three children; one is enrolled I. the local school and the others are too young to work or study.
One member I. this group has an end-of-term loan and the rest have monthly payment loans. They are not required to pay any principal O. the loan until the very end of the loan term. End-of-term (EoT) loans are AMK’s maI. 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. Most clients start to make payments many months before the end of the loan term. Almost all of AMK’s clients make their payments O. time. AMK has a delinquency rate of only 0.09% and AMK has a default rate of 0% O. 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.