A citizen from a rural village of Kampong Cham province in Cambodia, Leang is 47 years old and has seven children. Currently, two of her kids are in school. To cover her family’s expenses, Leang and her husband farm rice on three hectares of farmland. Leang has been in this business for 23 years and she can earn about 39,600 KHR per day.
Leang has never applied for a loan from VisionFund (Kiva's partner) before. Now, she forms a group of two to apply for their first loan of 1,000,000 KHR each. Leang is going to use her loan portion to buy fertilizer and pesticides to protect her rice. She hopes that she can acquire enough capital to do her business and to expand her farmland.
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.