Yorn is a 30-year-old mother of one dependent child from Siem Reap province’s Srey Snom district. To support her family, she has cultivated rice on two hectares (nearly five acres) for 12 years. The business returns about 20,000 KHR, and she can save 10,000 KHR after deducting daily expenses. As the leader, she will use her portion of the loan to buy the fertilizer and pesticides used to grow her cash-crop. She hopes to make more income from her business so that she can improve her living conditions.
Group member Yan has never borrowed from VisionFund, Kiva’s partner, so this is her first loan. The total loan amount requested by the entire group is 2,500,000 KHR.
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.