A young mother of five schoolchildren, Von, is 27 years old and married. She has managed her two hectares of farmland for rice cropping. It is the only business that she has been engaged in for 5 years, and she is able to earn about 5,000 KHR per day. Von is in a group consisting of three members, and they are first-time borrowers with VisionFund (Kiva's partner). The total amount of her entire group's requested loan is 1,800,000 KHR. Von, the leader, is going to use her portion (1,000,000 KHR) to build a decent house for her family, especially for her children. Moreover, she will use a portion of it to buy fertilizer and rice seed for her farmland. She hopes to own a proper house for her children and to receive a high crop yield so that she can increase her income and keep all of 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.