Sivorn, age 49, is a villager in a rural area of Ek Phnom district, Cambodia. She is married and has three children, one of whom is employed as a factory worker. To earn a living, Sivorn has a business selling cakes and, to add more income to the family, her husband works as a fisherman. Sivorn is a fifth-cycle client with VisionFund (Kiva’s partner) and is now leading a group member, who also is a fifth-cycle client with VisionFund, to apply for a loan of 1,800,000 KHR in total. The past loans have helped Sivorn to improve her family’s living standard and secure food for her family. Now she is in need of money to buy fishing materials (such as fish trap, cast net, etc.) for her husband’s business. She dreams of being able to build a comfortable house in which her family can live.
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.