Buncheak, who is 27 years old, resides in a rural village of Ek Phnom district in Cambodia’s Battambang province. She is married and a mother of a daughter and a son, all of whom are under her responsibility and in school. To support her family, Buncheak raises pigs while her husband complements the income by farming rice, growing beans, and working as a hairdresser. Together, they are able to earn approximately 40,000 KHR daily and save around 14,000 KHR after deducting the daily expenses. Buncheak is leading a group of two female members who both are fourth-time borrowers with VisionFund (Kiva’s partner) to take out a loan in the amount of 1,400,000 KHR each. Buncheak will spend some portion of the loan to support her husband's business by buying fertilizer, pesticide, and bean seeds. In hopes of expanding the pig-raising business and earning more income for the family, the other portion of the loan will be spent on buying more piglets to raise. After receiving her loan portion and effectively using it, she highly hopes that she can generate more income and use the income to improve the condition of her family as well as to advance her children’s schooling.
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.