Savings Group

Savings Group

Savings groups are small organizations that are implemented to aid community members in saving money for specific uses. There are two types of savings groups that are commonly used around the world: Rotating Savings and Credit Association (ROSCAs) and Accumulated Savings Credit Association (ASCAs). In ROSCAs community members make monthly contributions that are collected by one member on a scheduled rotation. In ASCAs members still make monthly deposits however members or other parties can take out loans of the funds that are paid back with interest.

These types of group are often used to fund and organize community events or make community purchases and typically operate under strict rules. Savings groups are very common in impoverished areas to make such purchases (Ledgerwood and Rasmussen 2011). Because there is already an existing savings group in Langrug, our team looked into the possible use of a combination of a cooperative and a savings group to sustain the business and operations of the WaSH station and the potential kiosk.

Outline of Operations in ROSCA and ASCA Savings Groups (Development, 2012)

Furthermore, our team researched specific cases of savings groups being implemented in low-income communities in Malawi and Kenya, as well as a company that provides aid to such groups.