Lim, aged 50, is living in a rural area of the Prey Chhor district, Kampong Cham province. She has three children and earns a living through rice farming, supplementing her family’s income by pigs raising while her husband works for others for a fee. She and her husband have been in this business for 25 years. From the current business, they are able to earn about 25,000KHR per day and to save about 7,000KHR each day after daily expenses. Low crop yield destroyed by insects is the main challenge for her business. This is the first loan for Lim’s group consisting of four members with Kiva’s partner, VisionFund. All of them are seeking 1,000,000 KHR each. As the leader, Lim is going to use her portion to buy pig feeds for her pig raising business. She hopes her crop yield will become more profitable and increase her family’s income so as to earn a better living.
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.