When families in the central Cambodian village of Rung village need cash, there are money lenders and even local microfinance institutions to approach. But most people dislike both options because loan terms are quite onerous, and people feel it is too risky to use their scarce assets, such as cow or small plot of land, as collateral. To collectively address this challenge, CWS has worked with communities to start savings and lending groups that can lend small amounts of money to group members with their mutual trust as collateral. In Rung there are now five saving groups with 125 members, mostly women, who each save 5,000 Riel ($1.25) monthly and who are, in the process, building a community nest egg for lending in support of Rung’s future.
Cash saving for families
CWS Cambodia | January 21, 2016