A local villager from Pursat Province, Mao is 30 years old and married. She is blessed with three children. For her family, five hectares of rice farming and income from her husband’s occupation as a construction worker are the main sources of her family’s income. Rice farming has earned her about 35,000 KHR per day. It is a business that she has had for 12 years. This is the first microloan for Mao with VisionFund (Kiva’s partner). She is forming a group of four women to apply for a loan. As the leader, she will spend her loan portion to buy eight sacks of fertilizer for her crops. She hopes that she can gain a good yield from her farming so as she can save money to buy pigs for raising for an extra income.
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.