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 idea behind VSLA is to provide basic affordable savings and loan facilities in a community that does not have easy access to financial institutions.
- Our mission is to create a community – managed savings and loans group that belong to stakeholders of the associations.
- To encourage saving practices, accountability in the most efficient, simple and organised way such that the less educated can understand and trust.
- To have a group that members can have a social fund which provides a basic form of insurance.
To contribute to women empowerment.
At Purple Village Savings and Loans, we see the need for the underprivileged to be given equal financial opportunities just like the affluent. We have established this programme as our goal to train Field Officers and Village agent to help educate locals on how to save, apply for loans, buy shares and generally manage their VSLA accounts. We take issues of financial accessibility close to hearts and we like to see the aged enthusiasm in patronizing micro finance.
We ensure that the association is trained and well informed about the swift running and management of the programme by our qualified team of field officers. It takes thirty six weeks for the participants to be fully trained.
Listed below are our way of scheduling our operations:
Once the members of the association have agreed to be trained, it takes 12 weeks of intensive training to ascertain member competence to manage their shares.
We carry out a three week visit during the loan meeting days to supervise development as members are getting used to the scheme.
In this phase, two weeks purposeful visits are made. One for light supervision and the other to help the members prepare for graduation.
Key Facts about VSLA:
- 78% members are women
- 89% of groups continue to operate after 5 years
- 98% of members continue from one annual cycle to the next year