VISAGs Finance Scheme
Formal financial institutions often overlook or offer limited financial services to remote populations. Besides not having Infrastructure to ease access, sometimes even the few services are not customized to respond to the needs of these rural communities.
As such, informal financial institutions as well as alternative providers like traders and input suppliers have become major financial service providers. These however, are characterized by weak institutional and managerial capacity which has led to quick collapse with people’s savings, charging of steep interest rates, imposing of high transaction costs etc. This has either discouraged people from saving or limited their access to a wide range of financial services as offered to their urban counterparts.
Therefore, Foundation’s establishment and support of Village Saving groups (VISAGs) Finance Scheme is premised on the fact that financial inclusion and education are keys to unlocking the economic potential of rural areas.
Currently, 8 VISAGs periodical benefit from this scheme where money is extended to boost their existing savings for purchase of agricultural inputs when seasons set in, acquisition of goats, pigs and sheep for rearing amongst members, payment of veterinary services and extension services, plus cope with post-harvest demands.
The scheme in so doing has registered two significant positives;
Group members have managed to access credit at below-market interest rates enabling them repay easily unlike before when many had rapidly started losing permanent assets like land, houses to service the steep interest rates especially in times of poor harvests
VISAGs are increasingly becoming financial literacy hubs and members have been empowered to take informed financial decisions in their households and businesses.
