A SCA is a very simple credit union in which poor people save and lend their own money to one another. Each member contributes an agreed-upon savings amount to the group’s fund at a weekly meeting. The SCA members decide how much of the group’s fund to lend, to whom it will be lent, and the terms of the loans. At the end of a predetermined length of time, usually six to twelve months, each member’s savings are returned along with dividends they have earned from the interest charged on loans. It is microfinance without outside managers or money!
