In most cultures, forming mixed savings groups with male and female members is accepted. Yes! Membership to a Savings Group is open to both women and men. It is however recommended to have women only groups to ensure that women have a safe space for their activities and are able to build a support network through the self- selection process for group formation. Yes! Savings Groups can be women only or a mixed group of men and women. Savings Group typically do not offer long term loans.Varying demand for loans creates limitations on the cash available in the Savings Group.This typically happens 1-2 months before the end of the cycle. When approaching the end of the cycle, Savings Group collect outstanding loans and stop distributing new loans.Members can only borrow up to three times the value of their total savings in the group.What are the limitations when borrowing from a Savings Group? The elected management committee of the group ensures these policies are adhered to. These are defined, agreed by all members and documented in the group’s constitution. Who defines the rules of operation of the Savings GroupĮach Savings Group determines its share price, loan interest rate, loan duration options, social fund contribution, and a system of fines for violations of group policies. It also helps ensure there are funds available for other group members to borrow. Setting this limit ensures that members do not borrow more than they can repay. Is there a limit to how much someone can borrow?Ī member can borrow up to three times the amount they have saved, for a period of up to three months. Any member can request to borrow funds and is asked to present their reason for borrowing and how they will repay the loan.
Once each month, groups hold a lending meeting. How do members borrow from a Savings Group? All members must strive to buy at least one share every meeting. Others allow members to purchase more shares when they have more to save. Some groups require members to purchase a fixed amount at every meeting. Members can then purchase between 1-5 shares at each meeting. The cost of one share should be set low enough to ensure that every member can buy at least one share every meeting. The share price is determined by the group at the beginning of each cycle. How do members save through a Savings Group? Shared goals and commitments – Groups focus on shared objectives and support one another to achieve their objectives.ĥ.Accurate record keeping – Groups record every transaction during each meeting and all members know how much money has been saved.Transparent and inclusive decision making – Group decisions are made by voting.Anyone can be voted to be on the management committee. Democratic governance – Group leaders (management committee) are selected each cycle via an open election process.Self-selection – Groups choose their own members.Savings Groups work successfully when members adopt a few core elements relating to group formation and management. What makes Savings Groups work successfully?
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