Loek is 42 years old and a villager living in a rural village of Battambang province’s Ek Phnom district, Cambodia. She is married and a mother of three dependent children, all of whom are school-aged children. Loek offers a decent life for her family by raising pigs while her husband complements the income by working as a rice farmer and a fisherman. Together, they are able to earn around 75,000KHR per day and manage to save approximately 14,000KHR after offsetting the daily cost of living. This will be Loek’s seventh time requesting loan via Kiva’s partner, VisionFund. The previous loans have enabled her to better support her family and improve the family’s living condition as well. Now, Loek is leading a loan group of five female members, who all have been with VisionFund before and successfully paid back their previous loans, to take out a loan in the amount of 6,800,000KHR in total. As a group representative, Loek will spend her loan portion (1,400,000KHR) to support her pig-raising business by purchasing pig feed and to support her husband’s rice-growing business by purchasing fertilizer and pesticide. After receiving the loan portion and effectively using it, Loek highly believes that she and her husband can smoothly run the business, generating more income for the family. This industrious woman (Loek) would love to use the income to move her family ahead and, most importantly, keep her beloved 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.