A 58-year-old resident in a rural area of Battambang province’s Moung Russey district, Cambodia, Sun is married and blessed with five children. He meets his family’s needs by farming rice on one hectare of farmland and by planting pineapples. Having been in the current business for 14 years, he is able to earn about 20,000KHR per day.
A first-time borrower, Sun is leading a group to request a loan of 2,200,000KHR in total. The loan portion of Sun, 1,000,000KHR, will be spent on buying fertilizers to apply in his rice and pineapple farmland. Via the help of this loan, Sun hopes that his current business will provide him with a better quality and higher crop yields.
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.