Hong earns her living through farming rice, the business in which she has been involved for 13 years. She earns around 23,000 Cambodian riels (KHR) per day and manages to save approximately 9,000 KHR after offsetting the daily cost of living.
Due to insufficient working capital to support her rice field, she is now leading a group of four members to take out a loan for 3,400,000 KHR in total. Hong is a second-cycle client with VisionFund (Kiva’s partner). Her previous loan, which she successfully paid back, helped to support her rice field and improve her family’s living standard.
Now, with her requested loan portion of 600,000 KHR, Hong will spend part of it to buy fertilizer to support her rice field and the other portion to buy household supplies. After receiving her portion in this loan, Hong expects to see a boost in her income. She will save money to build an appropriate and warm house for her family.
About VisionFund CambodiaVisionFund 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.
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Success!! The loan was 100% repaid