Village savings and loan associations (VSLAs) are community-run groups of about 30 people that help members save money, borrow small amounts, and get emergency funds. These help members improve their lives by saving for assets, homes, education, and farming.
KICS has set up 20 VSLAs that provide training and materials, including account books and a metal lockbox. Training helps members understand the process, form leadership, and set rules including the interest rate for loans. After initial support, the groups become self-managed.
Members save small amounts weekly (20p-60p). The saving fund is then loaned out to members at a low interest rate for three months. The interest accrued on savings is shared among members at the end of the year. Most groups start again the following year.
In 2023, 12 groups saved an average of £1,300 each over the year and earned £350 in interest. Members are excited about saving, borrowing and getting a return on their investment.