Yum, 56, is living in a rural village of the Sampov district of Pursat Province. She has eight children, five of whom still need her support, as they cannot earn much money. Two of her dependent children are working for others for pay and some of the other children are still at school. Yum has been farming for 30 years on two and half hectares of farmland as her main source of income. She also plants watermelons, raises chickens, and works for others for a fee to earn additional income to support this big household. Her main challenge is the drought in the first quarter of this year that made her crop yield fruitless. To overcome this challenge, she formed a group of seven members who applied for a new loan. This is the fifth loan for Yum, the second loan for three of the members, the third loan for two of the members and the first loan for the last member. With success, Yum has managed to pay back all the past four loans and it has improved her living conditions so they are better than before. Now, she is applying for 1,300,000 KHR. As the group leader, she will use her loan portion to buy fertilizer for her farmland and pay for harvesting fee. In addition, she is going to use some portion of the loan to buy 20 more chickens to raise. She hopes to earn more income from her current businesses so she can save some money to buy a new motorbike for her family to use.
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.