Soem is 51 years old and married. To cover the daily cost of living for her children, she grows rice on five hectares of farmland, with support from her husband. She has been in rice farming for 10 years. This is the fifth loan cycle for Soem, and the third loan cycle for her co-member in the group of two. Soem's past loan, which she has completely repaid, relieved her family's burdens and improved its livelihood. Now, she is the leader of the group to apply for a new loan. She will use her portion of the loan to buy fertilizer, gasoline and insecticide for her rice farm. She hopes to gain a yield better than last year's, so she can keep a good pace of her lifestyle as well as her business.
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.