Residing in a rural area of the Srey Snom district in Cambodia’s Siem Reap province, Aen is a 60-year-old widow. She is a single mother of seven children, one (a son) of whom is under her responsibility and currently in school. To support the family, Aen works as a rice farmer on a 1.5 hectare (3.7 acre) plot of farmland. She earns about 5,000 KHR each day and saves approximately 2,500 KHR after paying her daily expenses. Aen, a second-time borrower, is leading a group of two. Aen and the group's other member, who is just a first-time borrower, request loans in the amount of 400,000 KHR and 100,000 KHR, respectively, for a total of 500,000 KHR. Her earlier loan enabled Aen to better meet her family’s needs. This time, she will utilize her portion of the loan to pay for the cost of labor. Single mother Aen expects her portion of the loan to help her to harvest her rice on time.
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.