The village bank, which consists of ten members, is located in Prasat Village in Kampong Cham Province and they plan to use the loan that they have obtained for various purposes. Mrs. Noeurn P. is the village bank president who has been selected by the members. She is a farmer who owns a small piece of land used to cultivate rice to earn her income. With the rice revenue, she not only cannot support her household, but she also cannot afford to buy another piece of land to cultivate more rice. Therefore, she decided to ask for a loan for this purpose. With this loan, she hopes to increase her income and improve her living conditions within a few months. Mrs. Noeurn P. is 60 years old, a widow and the mother of nine children. Two of her children are employed in a garment factory. Five others are laborers and the others are enrolled in the local school.
This is a group loan consisting of mainly end-of-term loans. Seven members have end-of-term loans and the rest have monthly payment loans. These members 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 they are the most beneficial to Cambodia’s poor. This system allows them to repay portions of the principal whenever they are financially able. Most clients start to make their 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 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.