Angkor Mikroheranhvatho Kampuchea

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Credit Services
   - Summary Credit
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AMK offers seven credit products:

Three Group-guaranteed Loans without any physical collateral requirement
Two Individual Loan products, small and large I-ID loans, both are required to have physical collaterals and guarantors
An Emergency Loan, restricted to clients who have completed at least six months with AMK and are still active at the time of application
An Urban Loan, for city dwellers who have stayed in the area at least 2 years. Physical collaterals are not required, except guarantors

The group loans have three distinct repayment modalities:

End-of-term
Installment
Credit-line

AMK’s flagship products are the solidarity group loan products, which offers flexible repayment terms where clients can borrow and repay at any point during the cycle. Loans are delivered through a solidarity group lending methodology, with the village solidarity groups known as Village Banks (VBs). Effectively VBs are “Village Associations” or “Village-level client groups.”

Potential clients self-select themselves into solidarity groups containing 4 to 6 members and these, in turn, are organized into VBs of 4 to 12 groups (or 20 to 60 clients). Being part of a self-selected solidarity group ensures that three to five other villagers trust the loan applicant enough to let him/her join their solidarity group. All loans are guaranteed by the respective group members and appraised and approved by AMK’s Client Officers (CO) and the Village Bank President (VBP) before disbursement is approved.

Summary of Distinctive Features of Credit Products (Group Loans)

Descriptions	End of Term-Village Bank	Installment-Village Bank	Credit Line-Village Bank	Emergency Loan
Clientele	Group members with seasonal (lumpy) cash flow	Group members with regular cash flow	Group members who have completed 2 cycles	Individual or group clients who have completed at least 6 months
Loan Size	1st Cycle: R400,000 2nd Cycle: R600,000 3rd Cycle: R800,000	Up to R800,000	Up to R800,000	Up to R400,000
Loan Guarantee	Social guarantee - No need for physical collateral or guarantors			One personal guarantor
Loan Denomination	Riel, Thai Baht (in Banteay Meanchey) and US$
Disbursement Deadline	1 to 2 weeks from signature if there are no changes in the application form			4 working hours from the time of request
Maximum Term	12 months		24 months	10 months
Interest rate and payment frequency	3% monthly interest, end of term principal (or before)	Monthly fixed principal, declining 2.8% interest	3% monthly interest on the outstanding loan principal on or before the end of term	2.5% monthly interest on the outstanding loan, principal on or before the end of the term
Prepayment Penalties	None
Late payment fee	Additional 1% per month on the pending principal (starting from the month a payment has been missed)
Other fees	Up-front fee: 0.5% of loan amount			None

Summary of Distinctive Features of Credit Products (Installment Individual Loans "I-ID")

Descriptions	Small I-ID	Large I-ID	Urban I-ID
Clientele	Individual clients with regular cashflow		Individual clients with low income
Loan Size	Up to 2,000,000 (US$500)	Up to R8,000,000 Up to US$2,000	Up to R1,000,000 Up to US$250
Loan Guarantee	Physical collateral and 2 personal guarantors		Physical collateral and/or two personal guarantors
Loan Denomination	Riel and US Dollar
Disbursement Deadline	1 to 2 weeks from signature if there are no changes in the application form
Maximum Term	18 months		12 months
Interest rate and payment frequency	Monthly fixed principal, declining 3% interest, from the 3rd loan/2 years: 2.5% interest	Riel loan: 2,000,001-4,000,000 Back Office:2.8%, Front Office:2.7% Riel loan:4,000,001-8,000,000 Back Office:2.7%, Front Office: 2.6% US Dollar loan: 501-1,000 Back Office:2.5%, Front Office: 2.3% US Dollar loan: 1,001-2,000 Back Office: 2.4%, Front Office: 2.2% Note: The interest rate differs in Phnom Penh city	Riel loan: Back Office:3%, Front Office: 2.8% US Dollar loan: Back Office: 2.8%, Front Office: 2.6%
Prepayment Penalties	None
Late payment fee	Additional 1% per month on the pending principal (starting from the month a payment has been missed)
Other fees	Up-front fee: 0.5% of loan amount