Aged 25, Ra is a young father who does rice cropping. He resides in a village located in Battambang province’s Thmor Koul district. During his spare time, he also drives a kind of transportation vehicle called “Ro Mork”, a motorcycle pulling a trailer full of people, in order to earn supplemental income. He has engaged in the current business for three years.
Ra has never been with VisionFund Cambodia (Kiva’s partner) before. He is joining a group consisting of two male borrowers, including himself, to take a new loan.
Ra will spend his loan portion to buy five sacks of fertilizer, to pay for plowing fees, and to buy insecticide for his farmland. He hopes to increase his income and improve his 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.