Saroeurn is a diligent farmer who needs to care for the one of her five children who is still in school. Her main source of income is from rice farming. She is a widow who is raising her children alone. During her spare time, she also works for others for pay, in order to avoid family hardship. By engaging in this business for 35 years, she has been able to earn up to 8,000 KHR per day and to save about 3,000 KHR per day. Her first loan from VisionFund was three cycles ago. She has already fully paid back her entire loan, and it has successfully injected cash into her business, improving her living standards. Now she is part of a group of two, applying for a new loan from VisionFund. She is applying for 600,000 KHR, while her fellow group member is seeking 500,000 KHR. Saroeurn is going to use part of her portion of the loan to buy potash for her farm and part of it to repair her house. She hopes this loan will help her to grow her rice in a timely manner and enjoy a good yield, so that she can make more money for her children’s education.
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.