Phalla is a citizen residing in Kandal province’s Kandal Stoeng district in Cambodia. She is a 32-year-old married woman with three children, one (a son) of whom is dependent on her and currently in school. Phalla earns her living through farming rice and raising pigs, the businesses in which she has been involved for more than 10 years, earning around 26,000 KHR per day and saving approximately 13,000 KHR after offsetting her daily cost of living. Phalla, a seventh-cycle client with VisionFund (Kiva’s partner), is leading a group member who is just a first-cycle client to apply for a loan in the amount of 1,000,000 KHR each. The previous loans that the group leader, Phalla, already received and successfully paid back have enabled her to send the dependent son to school and improve the family’s livelihood. Now with her requested loan portion, Phalla will buy fertilizer to support her rice field with part of her loan. The rest of her loan will be used to buy pig feed and cover household expenses. Phalla’s hope in the future is that her current businesses, rice growing and pig raising, will run smoothly so that she can boost her income and save some of the profit to keep her son 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.