Sreymom is 22-year-old young mother of one little child from Moung Russey district of Battambang province where her residential area is. She is a local farmer who does rice cropping as her main business to earn a decent income to support her entire household. The current business has returned about 25,800 KHR per day. Sreymom is a second-time borrower with VisionFund (a Kiva partner). She has fully repaid her past loan with success in order to upgrade her living conditions.
Now, she leads a group of eight to apply for a new loan. The total amount of her entire group is 5,500,000 KHR of which 500,000 KHR is her loan portion. As the leader, she will spend her loan portion to buy fertilizer for her farmland. She hopes that she can gain double the yield than before.
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.