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Interest rates in savings groups: Thrift or threat?

Abstract:

Savings group (SG) models are praised for achieving financial inclusion for the poorest at a very low cost. Promoted by international NGOs, SG models are inspired by indigenous savings and credit associations (ROSCAs). SG models however differ in that they prescribe lending the pooled savings to group members for an interest. The interest rate aims to (1) boost capital accumulation, (2) allocate scarce capital efficiently, and (3) remunerate and incentivize savers.
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Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1016/j.worlddev.2017.09.001

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Institution:
University of Oxford
Oxford college:
St Antony's College
Role:
Author
Publisher:
Elsevier Publisher's website
Journal:
World Development Journal website
Volume:
101
Pages:
162-172
Publication date:
2017-09-29
Acceptance date:
2017-09-03
DOI:
EISSN:
1873-5991
ISSN:
0305-750X
Keywords:
Pubs id:
pubs:725050
UUID:
uuid:c8c0c0e6-7108-43b8-aaeb-48e973c019df
Local pid:
pubs:725050
Source identifiers:
725050
Deposit date:
2017-09-04

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