Rotating and accumulating savings and credit associations: A development perspective

Financial self-help groups in low-income countries consist of two basic types, Rotating and Accumulating Savings and Credit Associations, or ROSCAs and ASCRAs. In the ASCRA, funds are not immediately withdrawn but are left to grow for loan making. Comparing the two groups, the author finds similarities and differences. Efforts to rectify the ROSCA's shortcomings have prompted many innovations, and given birth to a hybrid preserving the best of both types, in constant adaptation to changing environments. © 1995.