Phnom Den Savings and Loan Group at the Border
Phnom Den Khang Cheurng is a village located at the Cambodia-Vietnam border. This savings and loan group is formed thanks to the facilitation of Partners in Compassion (PC). The group consists of 14 members, all of whom are females. The group was formed on 24th April 2012, with the aim of fostering saving behavior and allowing all the members to borrow money from the group to fund their own income generating activities.
The group sets the price of a share from 5,000 Riel to 10,000 Riel and each member is allowed to deposit more shares according to their own capability and they all agree to set the interest rate at 2% for loan.
Up to 25 June 2013 the group’s total share has accumulated to 780,000 Riel and the total interest has increased to 58,000 Riel. All members are particularly pleased, because they could see the progress of the group and have a strong belief in the group along with understand the process and benefits of the saving group.
“All members in the group are very pleased and satisfied with the group, because they are aware of the benefits joining the group. Based on the unanimous decision of the group’s members, the total fund, including savings and interest, will not be distributed to the members, since they want to continue to save more in order to expand the group’s fund. Some members took the loan to support their income generating activities like ransack business, buying fertilizer for their paddy field, insecticide, and petty trade. Due to the unfavorable soil condition of the area for crop plantation and the lack of enough soil to grow vegetables or raise animal, the members grow rice and do trade, as the area is near Cambodia-Southern Vietnam border.” said Nun Soklin, residing in Phnom Den Village, Phnom Den Commune, Kirivong District, Takeo, who is the leader of the saving group.