Living under a wooden house, Nat is a 40-year-old mother of four dependent children (two daughters and two sons). Two of them are still in school, while the remaining two are helping the family's business. Primarily, her source of income is from her 3.5-hectares of rice cultivation. To add more income, she also raises pigs at home and her husband catches fish for sale. She has been engaged in this business for 25 years and earns about 14,000 KHR per day. Nat's group consists of five members. All of them are first-time borrowers and requesting the same amount: 1,000,000 KHR each. Leading this group, she will use her loan portion to buy fertilizer and rice seed for her farmland, and pig feed. She hopes to multiply her income from her current business to improve her living conditions.
About VisionFund Cambodia
VisionFund Cambodia is a Christian organization and microfinance institution that provides small loans and other financial services to improve the lives of children, empower poor women and their families, and grow successful businesses. The organization works primarily in rural parts of Cambodia and has distinguished itself by targeting the very poor who require smaller loan sizes, regardless of religious beliefs, gender or ethnic background.
Kiva lenders’ funds will help the organization to expand into the northeastern provinces of the country, which have historically been underserved and difficult to reach with financial services.
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.