Being one of the breadwinners in the family consisting of six children, one of whom is still in school, Vinda is 55-years-old and a farmer growing cassava as the primary source of her family’s income. To earn extra income, her husband is a cooking chef for weddings. Vinda has been in the current business for 10 years. She has never been with VisionFund (Kiva’s partner) before, and now she and two other villagers are in the same group. She is seeking for 3,000,000 KHR while her fellow group members are seeking for 1,500,000 KHR each. As the group leader, she will use her loan portion to pay for plowing fees and to buy good rice seeds for re-planting. She hopes this loan will help her support her business on time and to gain double output to improve her living.
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.