Phally is a local farmer residing in Battambang Province’s Ek Phnom district. She is 44 years old and a widow. She has 11 children, three of whom are still in school. Her primary sources of income are from rice cropping and bean farming while the secondary source of her income is catching fish for resale. Having had this business for 22 years, Phally is able to earn up to 19,300 KHR per day. This is the first time that Phally’s group, consisting of three female members, have applied for a loan with VisionFund (Kiva’s partner). The total amount of her entire group loan is 1,900,000 KHR, of which 500,000 KHR is Phally’s portion. As the leader, she will spend her loan portion to buy rice seed and potash for her farmland. She highly believes that she can make a good yield to sustain her lifestyle.
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.