A 53-year-old widowed mother of nine children, Hoy is a local rice farmer from Kampong Cham province. She has a one-hectare area for growing her rice, an activity in which she as been engaged for a long time and now is able to earn up to 37,200 KHR per day. This is the first micro loan for Hoy’s group consisting of three female members with VisionFund(Kiva's partner) and they are seeking for the same loan amount, 1,000,000 KHR each. As the group leader, she will spend her loan portion to pay for plowing fees and to buy rice seed for her farmland. She hopes to support her business on time and get a good income for her family’s sake.
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.