Sengan is a rural villager living in Kampong Cham province, Cambodia. She has four children, two of whom are students. To support the necessary daily basic needs of her family, she grows rice and her husband works at another farm. She is able to earn up to 20,800 KHR per day from her current business that she has worked at for 13 years. Sengan is a third time borrower with VisionFund, and has repaid back her past loan already. The loan has improved her living standard. This cycle, she formed a group of four to apply for a new loan and she is the group leader. For Sengan, her loan portion will be used to buy potash for her farmland. She hopes her rice harvest will be bountiful and so that she will get back more profit to improve her standard of living even more.
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.