People born and living in the rural sector of developing countries typically have very limited access to basic products and services, exacerbating their exclusion. Exclusion from the financial system and lack of access to liquidity for productive investments or covering their basic needs heightens their vulnerability and limits their development possibilities.

In this context, communities in many parts of the world have organized to provide a response to their needs within the framework of what is known as community microfinance. Savings and credit groups emerge as a model that allows them to generate revenue for themselves, have access to liquidity to cover the most urgent basic needs and invest in improving or undertaking an economic activity.

This model has benefits that go beyond access to saving and credit, such as empowerment of people, especially women, training to teach financial literacy and basic business management, reduced vulnerability, promotion of solidarity and association among the members. Throughout this publication, we explain what saving and credit groups are, the 7 cornerstones of the model, a success story and some impacts obtained through these groups.

You can also download this publication in Spanish.