Lis is 34 years of age and married. She lives in a rural village of the Srey Snom district, located in Siem Reap province in Cambodia. She is blessed with four sons, all of whom are school-aged children. Lis makes her living by farming rice on a hectare of farmland. Each day, she earns around 10,000 KHR and manages to save approximately 5,000 KHR after accounting for the family's daily living costs. Lis is leading a loan group of three female members who all are first-time borrowers with Kiva’s partner, VisionFund. They are each applying for loans in the amount of 1,000,000 KHR. Lis will spend her portion of the group loan to construct a comfortable house that will provide an appropriate environment in which her family can live, especially her young kids.
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.
About Housing Loans
Many poor families cannot afford housing that meets their needs. When you make a housing loan on Kiva, you give people access to flexible capital to obtain or improve their homes. Better housing means better health, sanitation, and even educational outcomes for children. A house can also be much more for entrepreneurs who run businesses out of their homes. In this way, housing and small business loans on Kiva share a common purpose: to alleviate poverty and enable families to enjoy more stable lives.