Hime from Cambodia usually worked as a hired hand for other farmers, but in 2023, she decided to rent land and try to earn more by planting cassava and managing the fields herself. She didn’t have enough cash on hand to buy pesticides and fertilizers, so she bought them on credit.
She harvested the cassava in early 2024. It didn’t seem like an exceptional yield, and by the time she dried and sold the cassava, the price had dropped. Would she really make a profit? She sold the last of the cassava and paid the harvesters, but she still owed more than $1,000 to her pesticide creditors.
Hime had suffered a significant loss on her cassava crop. She didn’t know what to do except take out a loan from the bank. Hime borrowed $1000, which she would need to pay back at a rate of 1.2% to 1.5% per month, or 12% to 18% annually. Her monthly payments were set at $47-57 per month for the next two years. Would she be able to make all these payments? She was worried.
Hime joined a SALT Savings group in September 2025. The facilitators taught the group about the importance of having a clear plan for their loans. When Hime requested her first loan, it was to pay back her bank loan. She had been worried about falling behind on payments and feared the bank would take her home. Most of the year, she has enough work and makes sufficient income to cover her loan payments and support her family, but during January, February, June, July, and August, her income drops significantly.
The savings group agreed to her plan, and they were happy to see her repay the loan. Recently, Hime paid off everything she owed the bank. The facilitators asked her if she plans to take out another bank loan. Hime replied that she is afraid of bank loans and also understands the risk of buying on easy credit. She wants to stay with her neighbors in the SALT Savings Group and is eager to learn how to save while developing a clear plan for her future.
