Savings & Loans

Savings & Loans Groups Take Off !

Saturday, August 25th, 2012 by Kelsey

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ROWAN has created a Savings and Loans Association for local community members to learn how to save and empower their families! Training came from Care International in Uganda.

Here is how ROWAN Savings & Loans Group works:

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Step 1: Friends create a Savings and Loans Group, no more than 20 members.
Step 2: A Constitution is written and signed by all members including rules and regulations of group. Each group member has a role to play: either a key holder, a box holder, a money counter, the chairperson, etc.

Step 3: Each person brings 1,000-5,000 Shillings (equaling .50-2.50 USD) per week, which is documented

Step 4:  The goal is to have the money go out in the form of a small loan to group members, with 10% interest. Each member who desires a loan must apply and have a unanimous vote from the group.

Step 5: The 10% interest must be paid back each week, but the loan must be paid back in 3 months.

Step 6: As money is accrued from interest, the group gains profit for future loans.

Step 7: Welfare account is used for people who are in dire emergencies and need a loan without interest. Must have unanimous vote!

Step 8: After 6 months, most groups have saved up to 1,800 USD and each individual is flourishing in a new small business!

Currently ROWAN has 4 Savings and Loans groups, with more starting every day! This is all part of our self-sustainability plan and process for ROWAN members to empower their families and eventually graduate from our program!

Pastor Paul, Founder of ROWAN calls these groups “The backbone to the ministry.”

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“Our passion is to create a culture of savings in our rural communities. Once we have done that, we really have done something remarkable.” -P.Paul