A simple yet powerful system
A Village Savings and Loan Association or VSLA, is a group of individuals who regularly meet to save money together and take small loans out of those savings. They exist to provide communities that do not have easy access to formal financial services with facilities to loan.
These loans can be used for individuals to start their own business, purchase clothing, seek health services, educate their children, and more.
VSLA programs provide many benefits to the developing world, including:
Long-term economic stability
They are also easy to implement and have proven to be effective. Because it is not a resource-heavy program, all members of communities can participate and learn to become self-sufficient, which is essential in improving their standard of living.