Understanding the Sumarni Neighborhood Endowment Fund, Indonesia

Here the Officer of the Sumarni Neighborhood Endowment Fund talks about the programs growth from a small seed grant of only $250 in 2003 to a savings fund of over $1100 in 2008. She describes how members borrow small sums of money, around $3.50, and pay them back slowly at 1% interest. To enforce the importance of accountability in the program, if the borrower is delinquent in the payment of 10 pence a month, they will be charged an increased interest rate of 2%. All interest then goes back in the savings fund so that more members of the community can borrow from the savings fund as the program grows.

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