As a mother of three kids living in the Tbaung Khmum district of Cambodia, Sokhom is 55 years old and a local farmer in the area. She grows rice and her husband works on a rubber plantation, tapping the rubber tree for latex. The current business earns her about 16,000 KHR per day and she has been engaged in this business for 30 years already. Sokhom, in a group of three first-time borrowers, is the leader of her group. She and her two members are seeking 1,000,000 KHR each. Sokhom is going to use her portion to buy fertilizer for her cash crop. She hopes to make more income from her business so as she can 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.