A Village Savings and Loan Association (VSLA) is a group of people who save together and take small loans from those savings. The activities of the group run in cycles of one year, after which the accumulated savings and the loan profits are distributed back to members.The purpose of a VSLA is to provide simple savings and loan facilities in a community that does not have easy access to formal financial services.
A VSLA is a more transparent, structured and democratic version of the informal savings groups found in villages and slums in many parts of the developing world. The main difference is that the VSL methodology is a better organized and more accountable system that even the least literate, least influential member of the group can understand and trust.
VSL Associates is a consortium of microfinance practitioners dedicated to spreading the Village Savings and Loan (VSLA) model more widely throughout the world. Their objective is to provide millions of poor households with a secure place to save, the opportunity to borrow in small amounts on flexible terms, and affordable basic insurance.
Publicly available: yes
Countries where available: Worldwide