Phally is a 40-year-old mother of four dependent kids from Moung Russey district in Battambang Province, where the rest of her family is. For the sake of her family, she grows rice on three hectares and operates a motor-taxi service for supplemental income. The current business, in which she has been involved for 20 years, has returned her about 38,000 KHR per day. This is not the first loan for Phally with VisionFund (Kiva’s partner). The past six cycles have returned her a positive impact, allowing her to upgrade her living conditions at a good pace. She also has completely repaid back her past loans with success. Now, she joins a group of two to apply for a new loan. Her requested loan amount is 1,400,000 KHR while the other member is applying for 1,000,000 KHR. As the leader, she will spend her loan portion on 12 sacks of fertilizer for her farmland. She hopes that this purchase will support her crop on time and boost her land's productivity, allowing her to triple her crop output.
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.