As a young 26-year-old mother with two schoolchildren, Sophary and her husband are providing for their family by using a half-hectare of farm for rice cropping. For seven years, she has been with this business. She can earn about 14,000 KHR per day. Sophary's group consists of three female members, and she is the group leader. All of the members in her group have been with VisionFund for at least one cycle; Sophary is a fourth-time borrower, another group member is a second-time borrower, and the remaining group member is a third-time borrower. After the successful repayment of her past loans, she can manage to buy a decent motorbike for her family as well as to fix her house. For this cycle, she formed this new group to seek a loan. Sophary, as a group leader, will use her loan portion to buy fertilizer and to pay for labor costs for plowing her farm. She hopes to plant her cash-crops on time so as to maintain her family's 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.