What is Village Banks?
Village Bank means a group of at least 30 men and women who are living within an urban or rural community with household incomes at or below the poverty line, who have agreed to borrow as a group for the purpose of using such microcredits as working capital and consumer financing, and who have agreed to mutually guarantee all such group borrowings.
Below Are The List Of Village Banks In South Africa
The following village banks (Cooperative Village Banks) have been formed in South Africa:
Lehurutshe (formed in 1999).
Lothlakane (formed in 1995).
Motswedi (formed in 1996).
Which bank is also known as Village bank?
FINCA International
FINCA pioneered the Village Banking method, which is a leading global model for providing small amounts of credit to entrepreneurs.
How many local banks are there in South Africa?
According to the Prudential Authority, there are currently 31 banking entities in South Africa – 18 local banks, and 13 local branches of foreign banks.
How do village banks work?
Neighbors come together in Village Banking ™ groups. Individuals borrow working capital for their microenterprises, and the group guarantees those loans.
Village Banking ™ also encourages neighbors to support each other while growing their businesses; these mutual support groups can help invigorate entire communities.
What are the benefits of belonging to a village bank?
Village Banking promotes a culture of saving among group members. Village banking enables group members to grow their money.
Group members are able to utilize money obtained from their village banking group to engage in different types of business ventures which contribute to growth of their money.
What are the principles that govern village banking?
Inside Solwezi’s Million Dollar Village Banking Program
How do these Village Banks save such impressive amounts of money?
Principle 1: Village Banks are autonomous and self-managing.
Principle 2: Village Banks are made up of 15 to 35 self-selected members.
Principle 3: All elected committee members are female.