Lesson-148828-5

Village Savings and Loan Associations exist in rural, low-income communities all over the world where community members have difficulty accessing conventional banking institutions. They existed in CACAO project communities before the project arrived, typically lasting for a brief period before disbanding. The Village Savings and Loan Associations associated with the CACAO project operate on a different, more professional, and vastly more successful plane. The beneficial outcomes for women, households, and communities are tangible. The key to the success of the Village Savings and Loan Associations under the CACAO project, in the view of the evaluation team, is that they provide paid facilitators who oversee and guide the functioning of the groups. They wear red vests, so they are distinguished in their roles, and they receive training and support from the prime grantee’s local partner. They are paid a stipend through the project’s period of performance, and the stipend will eventually to zero as the project matures. This commitment ensures that the Village Savings and Loan Associations function professionally like mini banks: meetings occur with regularity, contributions are tracked carefully, and the system for identifying and rotating individual loan recipients is well-organized. The value to members is apparent, so Village Savings and Loan Associations will likely continue to support a facilitator out of their own funds once the project ends.