Impact of Village Savings and Loan Associations (VSLAs)

Abstract

This evidence review investigates the impacts of various community-based financial institutions, including Village Savings and Loan Associations (VSLAs), Self-Help Groups (SHGs), and Rotating Savings and Credit Associations (ROSCAs), in low-and middle-income countries. These institutions aim to enhance financial inclusion and economic empowerment among underserved populations by facilitating access to savings and credit. The review synthesizes findings from empirical studies to evaluate the effectiveness of these models in increasing savings, providing credit, improving economic stability, and fostering community development. Despite notable benefits in financial behaviors and empowerment, the broader economic impacts remain modest.