Sokneang, a peasant who grows cassava on two hectares of farmland, is a young mother of two schoolchildren, age 27 years old. To supplement the family’s income, she also sells sugarcane juice in the local area. With 10 years' involvement in the current business, she is able to earn up to 28,500 riels per day. She is in her second cycle with VisionFund (Kiva’s partner). After her past loans, which she fully repaid, she feels empowered to relieve her family’s burden and sustain her living. Now, she formed a group of two to apply for a new loan with VisionFund. As the group leader, she will use her loan portion to buy fertilizer and pesticide for her cassava farmland. She highly hopes this purchase will increase her crop yield and bring in a good income for her children.
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.