Sokha, a resident of the Ponhea Krek District of Kampong Cham Province, is a 41-year-old married mother of two children, one of whom is still dependent and in school. She and her husband have struggled to feed their family. They have been farming rice on 1.5 hectares of farmland, growing cassava on 1 hectare of farmland and raising pigs for thirteen years. Sometimes, they supplement their income by working for others for a fee. The current business earns her family about 46,000 KHR per day and they manage to save about 10,000 KHR each day after daily expenses.
This is the first microloan for Sokha’s group with VisionFund. She is leading her group to request a loan of 500,000 KHR and 1,000,000 KHR respectively. As the leader, she is going to use her portion to buy fertilizer for her rice and cassava business. Sokha hopes this loan will enable her to increase her income to improve her family’s standard of living and keep her child 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.