Chanthy, 31, is married and has three children, all of whom are still living at home and enrolled in school. To support his entire household, he grows rice on one hectare of farmland and works on another field for a fee. He has been in this line of work for 11 years and earns up to 14,000 KHR per day. He has applied for and repaid previous loans with Chanthy and VisionFund. He feels confident that he can stabilize his family’s living conditions, including provide three decent means a day for his household. He leads a three-person loan group, and will use his portion of this loan to pay to have his land plowed. He hopes that this loan will help him plant his crops on time and earn a good income.
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.