Chork, 56 years old and married, is a villager from Moung Russey district of Battambang province. He does rice cropping and sesame farming, each on one hectare of land. This business has returned him about 29,600 KHR. This is not the first loan for Chork with VisionFund (Kiva’s partner). He has repaid his past loan wisely and it has improved his lifestyle better than before. Now he leads a group of five borrowers to obtain a new loan. The total amount of the loan is 6,200,000 KHR, of which 1,000,000 KHR is his loan portion. As the leader, he will spend his entire portion of the loan to pay reaping fees and to support his sesame farming business. He hopes that he can collect his yield on time with a good 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.