Font Size: 

Microfinance Institution supplies loans, saving, and other financial services to the poor and low income population on a sustainable basis and help in the alleviation of poverty. This article examines the effectiveness of group lending in Amret Microfinance Institution leading to the poverty reduction at Kandal Stoeng district branch, Kandal province, Cambodia. This study firstly aimed to compare the effectiveness of group lending amount from 2011 to 2013. Secondly, the purpose of this study was to find out borrowers’ satisfaction level in group lending services leading to poverty reduction. Last but not least, the third objective of this study was to analyze the correlation between borrowers’ income and saving which highly contribute the improvement in living standard. The data was collected from both primary and secondary sources by semi-structured interview and questionnaires. The descriptive statistic used in this research consisted of Frequency, Mean, Standard Deviation, and Pearson Correlation. The results revealed that Amret had more effectiveness of group lending in 2013 and the borrowers’ satisfactory level on group lending methodology for reducing poverty was “Satisfied”. Last, the income and saving of the group lending borrowers had medium positive correlation equaled to 0.52., which meant that if the customers’ income increased, their saving also increased at a medium level.