Evaluation of the impact of Village Savings and Loan Associations using a novel survey instrument

Abstract

Formal microfinance institutions have been an important tool in the fight against poverty in developing countries, but their reach is necessarily limited. Village Savings and Loan Associations (VSLAs) are an alternative, informal mechanism for saving and borrowing that do not require external capital or ongoing financial or administrative support from a founding organisation. This article evaluates the impact of VSLAs on their members and finds that long-term members fare better along multiple economic, nutritional, and health dimensions compared with a control group of recent joiners.