Chaan, a widowed mother of five children and 48 years old, is a local farmer originally from Moung Russey district of Cambodia. She has two and a half hectares for growing paddy rice and one and a half hectares of farmland for growing sesame. Her daily income is about 23,000 KHR from the business that she has been with for 10 years, to cover the daily basic needs of her family. Chaan has been with VisionFund four times including this cycle. The past loans have provided her with working capital for supporting her business and improving her livelihood. Now, she has joined a group consisting of three female members. As the leader, she will spend her portion to pay harvesting fees and to buy fertilizer plus seeds for her farmland. She does believe that this prompt loan will keep a good growth of her business and provide her with triple productivity.
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.