Developing Community and Reducing Poverty through Christ-Centered Savings Groups

Accumulating Savings and Credit Association

HomeSavings Group TypesAccumulating Savings and Credit Association
Accumulating Savings and Credit Association

In this type of savings group, the participants deposit their savings each week into a common pool of funds that is then available to be loaned out to participants of their own savings group. Participants make an application to the group for a loan. Those receiving loans are charged interest on the outstanding balance of their loan until it is repaid. Many participants use the loans from the savings group to start a small business. These groups generally have a six-month savings cycle. At the end of the savings cycle each participant gets their funds back. They can then withdraw their funds or place them back into the loan pool.