Sivouch, a mother of six children, is originally from the Prey Chor district of Kampong Cham Province. She is 48 years old and a rice farmer on one hectare of farmland, which she has been doing for 30 years. Her main challenge is the shortage of working capital for supporting her business. Therefore, she formed a group of four to seek a new loan. This is the fourth time that she has been with VisionFund, Kiva’s partner. After the successful loan that she paid back fully, she feels confident that she can make a good living for her family. Now, the entire group loan is 4,600,000 KHR. Sivouch's loan portion is 1,400,000 KHR. She is going to spend it on fertilizer, rice seed, and gasoline for water pumping for her farmland. She hopes that this purchase will boost her productivity and make more income for her family.
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.