Cheng lives in a village of Tbaung Khmum district Kampong of Cham province, Cambodia. She is 35 years old and a married mother of three children, all of them are still in school. To cover the daily cost of living, she works for pay by tapping rubber to collect latex. Cheng is in a group consisting of three members. It is the third loan for Cheng, and the second loan cycle for her group members with VisionFund. They are applying for a new loan in total amount of 3,200,000 KHR. As the group leader, Cheng is going to use her loan portion to buy a motorbike to support her business as well as for commuting. She hopes that this purchase will help her to reduce transportation costs which she has to cover.
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.