To struggle for a living, she does rice-cropping on hectares of leased farmland. Her husband also helps her on the rice farm and, sometimes, he works as a paid worker to supplement the family’s income. The main challenge for her business is the fruitless crop caused by the shortage of water supply.
Seeing this challenge, Ruern formed a group of three to apply for a loan in order to overcome this issue. Ruern, whose past loans have been repaid with success, is in the fourth cycle of loans with VisionFund Cambodia (Kiva’s partner). Her previous loan has maintained a standard of living for her family. Moreover, she is able to keep her two children in school.
Now, the total of her group loan is KHR 1,600,000. Ruern will use her loan portion, in amount of KHR 1,000,000, to pay for leasing fees, potash, and rice seed, and to buy gasoline to pump water for the crops. She hopes to earn more income for her family since she wants to see a bright future for her children, in terms of education, as well as to own a plot of rice farm.
About VisionFund CambodiaVisionFund 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.
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Success!! The loan was 100% repaid