A young 24-year-old mother of three little kids, Sreyneat is a paid rubber tapper at the rubber plantation at Kampong Cham province, where her residential area is, to earn a living. With the five-year engagement in the current occupation, she is able to earn up to 40,000 KHR (Cambodian riels) per day. However, the main challenge for her is the huge expenses related to transportation back and forth to the workplace from her house. To overcome this challenge, she joins a group of two to apply for a new loan as first-time borrowers.
She is seeking 4,000,000 KHR while her joint member is applying for 2,000,000 KHR. As the group leader, she will use her loan portion to buy a decent motorbike to support her occupation. She hopes that her transportation expenses will be reduced so she can use that money to cater for her children’s needs instead, especially in purchasing good food for her 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.