Chreong, 32 years old and married, is the father of a small child, living in the Moung Russey district of Battambang province. To provide decent food for his child, he and his wife work on two hectares of rice farm and another two hectares of sesame fields. The current business, which he has been with for seven years, earns him about 25,000 KHR per day. Chreong’s prior loan was his original loan from VisionFund, Kiva’s partner. It has helped him to promote good living conditions for his family. Now, he and one of his co-borrowers are seeking 1,200,000 KHR each, while the remaining one is applying for 1,000,000 KHR. As the leader, he is going to use his portion to pay for harvesting costs for his rice production and to buy fertilizer, insecticide, and sesame seed. He hopes to bring in his harvest on time and sell at a high price, so he can treble his income and maintain his living standards.
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.