Savorn, a young 23-year-old mother of three schoolchildren, is a rural villager from Kralanh district of Siem Reap province. Her main source of income is from one hectare of rice crops. She has been farming for several years and is able to earn up to 12,300 KHR. This is the second loan for Savorn with Kiva's partner VisionFund. Her past loan, which she has paid back entirely, has enabled her to better support her household and her business. Now, in a group of two, she is the leader. She and her fellow group member are both in their second loan cycles and are requesting the same amount: 1,000,000 KHR each. Savorn is going to use her portion to buy two pigs for extra income. She hopes to fatten her pigs to a healthy condition, so she can earn a high profit and 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.