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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:

  1. End-of-term
  2. Installment
  3. 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

 



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