Seang is 42 years old and a mother of three children, one of whom is still in school. She has two hectares of rice, and one hectare of cassava growing. She has engaged in this business for 21 years and is able to earn up to 16,200 KHR. Her previous loan was the original loan with VisionFund, Kiva's partner. Her past loan has helped her farm rice on time with high yield and she can set aside some money to expand her cassava growing business. Now, she has formed a group of two second-cycle-loan clients to apply for a new loan. She is going to use her portion to buy fertilizer for both her cash-crops. She hopes this purchase will boost her productivity yielding a good profit, so she can buy a mini-tractor to support her business.
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.