Mrs. Vanna N. is a group leader of four, all of whom live in Kdol village in Takeo province. She is a rice seller and her husband, Mr. Meas Touch, is employed in a garment factory as an administrator. The couple have five children, one of whom is employed in a garment factory while another is a beautician who is hired by the local people for wedding ceremonies, parties, and so on. Their other three children are enrolled in the local school. Mrs. Vanna N. is applying for a loan to buy more cosmetic supplies to support her second child's beauty salon business.
One group member’s loan is end-of-term and the rest have monthly payment loans. The end-of-term (EoT) loan does not require payment on the principal loan until the very end of the loan term. EoT loans are AMK’s main product because they are the most beneficial to Cambodia’s poor, as 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 and 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.