Living in a rural village of the Moung Russey district of Battambang province, Ren is a 33-year-old mother of two children; all of whom are still dependent on her and in school. She and her husband earn a living through farming rice on three-hectare of farmland and planting sesame on three-hectare of farmland as the main sources of the family’s income. They have been in this business for almost ten years, earning about 25,000 KHR per day to meet the family needs. Insufficient working capital to buy fertilizers for applying to her cultivated land is the main challenge for her farming business.
Ren’s group consists of three members who live in the same village. She is a first-cycle client with VisionFund. Now she is leading her co-member to apply for a loan. As the leader, she will use her portion to buy fertilizers for her farmland. She hopes to have more healthy crops and earn more income to make a living better and keep her children in school.
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.