Moeurn, a female head of household with a family that includes two schoolchildren, is a rural villager in the Kandieng district of Pursat Province. She is a local farmer who strives for a living by growing rice and lettuce. Sometimes, her husband works for others for pay, to earn additional income. After engaging in this business for several years, Moeurn is able to earn about 23,600 KHR per day. Moeurn, who has never borrowed from VisionFund before, has joined a group of three first-cycle loan clients. Moeurn is applying for a loan of 400,000 KHR, while the other group members are applying for loans of 1,000,000 KHR each. Moeurn, the group's leader, will use her portion of the loan to buy fertilizer for her cash crops. She has great hope that using fertilizer will increase her output and help her generate a larger income to improve her 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.