Phea, a villager from Bovel district of Battambang province, is the young mother of two schoolchildren. She is a local farmer who grows rice and cassava as her main sources of income. Additionally, she works for others for a fee. Her current business earns about 27,000 KHR per day to cover her family's costs. Phea, who has taken out and repaid loans in the past, has joined with another borrower to request a new loan for 1,200,000 KHR for herself and the same amount for the group's other member. As the leader, she will spend her entire loan portion to pay for plowing fees for her paddy-rice and cassava field. She hopes that this financial aid will allow her to be ready for upcoming replanting season so as she can earn enough money to keep her children in school.
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.