Chanry lives in a rural area of Moung Russey district, which is located in Battambang province, Cambodia. She is 22 years old, married and has two dependent daughters, both of whom attend school. Chanry earns her living by farming rice on a two-hectare plot of land and by planting corn on a three-hectare plot. She has been with VisionFund for two loan cycles already, and used these loans to improve the living conditions of her family. In the hope of harvesting a good-quality crop so that she can boost her income even higher, Chanry is leading a loan group of two women who are applying for a loan in the amount of 1,400,000 KHR each. For both of them, this will be their third loan from VisionFund (Kiva’s partner). Chanry will use her portion of this loan to buy fertilizer and pesticide to apply in her farmland. She will be very happy to see her expectations--increasing her crop yields and improving the living condition of her family--come true after receiving the loan portion and using it as she plans.
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.