Living in a rural area located in Kampong Cham province’s Ponhea Krek district, Rem is a 34-year-old mother of three children, two of whom are in school. She and her husband are farmers who grow cassava in the local area, and supplement their family’s income by working for others for a fee. Having been in the business for 18 years, Rem and her husband can make a daily income from her current business of about 30,000 KHR and are able to save for future needs about 12,000 KHR per day after expenses.
This is the first loan for Rem with Kiva’s partner, VisionFund. Now she is leading her group to ask for a loan of 1,000,000 KHR each. She is going to use her portion to buy fertilizer for her cassava planting and use a portion of it to spend on plowing the field. She hopes this loan will enable her to timely grow her cassava so as to sell it for a good price.
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.