Touch, 59 years old, lives in Cambodia in a rural village of Battambang province’s Moung Russey district. She is married and the mother of three children. Touch and her husband have been farming rice and planting sesame tirelessly for the last ten years to support their family. Each day, they are able to earn approximately 49,000 KHR through their hard work. This will be Touch’s third request for a loan from Kiva’s partner, VisionFund. She was very satisfied with her prior two loans because they helped her meet her family’s needs. Now, Touch is leading a group of three people who seek a loan for 4,000,000 KHR. Touch will use her portion of the loan to buy fertilizer and pesticides and to pay for the cost of hiring people to help her with her crop. She believes that this loan will give her a good-quality harvest which will allow her to earn more money to support 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.