San, 39 years old, resides in Battambang province’s Ek Phnom district in Cambodia. She is married and is a mother of six children, some of whom are school-aged and some of whom are employed as paid workers in Thailand. San offers a decent life for her family through raising pigs and cows. San’s husband complements the income by farming rice, planting bean, and catching fish. This hard-working couple can earn about 83,000KHR per day and they save approximately 14,000KHR after offsetting for their daily cost of living. San has been with VisionFund (Kiva’s partner) for seven loan cycles already. The previous loans helped her relieve her family’s burdens. Now San is leading a loan group with three female members to take out a loan in the amount of 3,700,000KHR in total. As a group leader, she will utilize her loan portion in this loan, which is 1,400,000KHR, to support her business as well as her husband’s business by purchasing pig feed, fertilizer, pesticide, and bean seeds. Via the help of this loan, San believes that she will be able to generate more income to the family and use the income to keep her school-aged children 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.