Sarat, 30, is married and lives with her husband and three children, in a village of the Sangke district, Battambang province. All of her three children are dependents and under school-aged. Sarat and her husband are rice farmers, and they supplement their family’s income by working for others, for a fee. She has been in the rice farming business for 10 years, earning about 38,000 KHR per day, to feed her family.
Sarat’s group is comprised of two members, both of them female. Sarat is a first-loan-cycle client of VisionFund. Now she is leading her group, to request a new loan. Sarat, who is the leader, will use her loan portion to buy fertilizers and seeds for her farmland. With this loan, she hopes to increase her crop yield and earn more income, to better her family’s living conditions.
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.