A villager from a rural area in the Prey Chhor district of Kampong Cham Province, Phat is 60 years old and married. She has five children. The primary source of her family’s income is from rice farming. Her husband also complements the income by working for others for a fee to better support the family. She can earn about 34,000 KHR per day and manage to save about 12,000 KHR each day after the expenses.
Phat’s group consists of two members who live in the same village; she is in her first microloan with VisionFund. Now she is leading her group to ask for a loan. Phat, who is the leader, will use her portion to buy fertilizer and rice seeds for her farmland. She hopes this loan will enable her to get a high crop yield from her rice paddy that she can sell for a good price.
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.