Eleven people living in Preaek Pang village in Kandal province comprise this village bank loan, and they will use the loan for various purposes. Mrs. Sovann P. is 46 years old and is the president of the village bank group. She is also a vegetable seller in the local market. Her husband, Mr. Et Vuthy, is a farmer who owns a plot of land to cultivate vegetables. He needs to purchase more seeds to sow on his field. So, Mrs. Sovann P. decided to ask for a loan to buy ginger seed. She hopes to increase their income and improve her family living conditions with this loan. She has eight children, three of whom are employed in a garment factory, two of whom are laborers, and the remaining three are enrolled in 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.