Living in a rural village located in the Kandal province, Vet is 41 years old and a married father of three children. One of his children still relies on him. To cover his family’s expenses, he grows edible arum (type of plant) as his main source of income. He also earns additional income as a construction worker. The business that he has had for eight years has enabled him to earn almost 38,000 KHR per day. He is a former borrower with VisionFund (Kiva’s partner) for three past loans, which he has fully repaid. The loans have helped him to improve his family’s situation. Now, he is seeking a new loan, and he is the leader of a group consisting of seven members. He and the other group members are requesting a loan of 1,000,000 KHR each. Vet will spend his entire loan portion to buy fertilizer, insecticide, and seedlings for his crop. He hopes that his business will earn more income so that he can renovate his house.
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.