Mach, 53, is a farmer from Kampong Cham province where her residential area is. She is married and blessed with four children, one of whom is in school. Her three hectares of rice cropping has returned her about 26,600 KHR per day. With this loan, she and her other fellow group members are taking out their second microloan with VisionFund (Kiva’s partner). She has fully repaid her past loan to support her business and make her living conditions better than before. Additionally, she can now afford to buy household appliances and keep her kids in school.
For this cycle, she leads a group of three to apply for a new loan. The total amount for the entire group is 2,400,000 KHR, of which 1,200,000 KHR is her loan portion. As the leader, she will spend her loan portion to buy good rice seed, potash, and to pay for transplanting fees, as well as the plowing fee. She hopes that she can gain a high yield, better than last year.
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.