Discussion Paper

Alternative financial vehicles: rotating savings and credit associations (ROSCAs)


Abstract: This paper describes how ROSCAs work and discusses the benefits that accrue to ROSCA participants and some of the costs they incur. Of particular interest is the introduction of a partial data set collected from a local ROSCA, which offers a glimpse of the capital costs ROSCA participants face and which could ultimately be contrasted with the capital costs faced by borrowers at mainstream financial institutions.

Access Documents

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Community Affairs Discussion Paper

Publication Date: 2006

Number: 06-01