Self-Funded Groups (SHGs, Savings Groups, VSLAs)
This page will be used to gather requirements and explore the commonalities and differences between the various self-funded group models prevalent around the globe. Support for self-funded groups will be added into the Mifos X platform (Fineract) during the second release cycle of 2016. This will allow partners to build client and staff-facing apps to monitor and manage these groups. Self-Help Group models we are looking to support include:
Savings Groups (Africa)
Including Savings Groups, ROSCAs, ASCAs, VSLAs
Self Help Groups - SHGs (India)
Village Banks/Communal Banks (Latin America)
Other Bank Linkage Models
For each methodology, we will want to understand the common requirements that are shared and what is specific to each methodology centering around:
Size of the Group
Meeting Frequency
Source of Loans
Self-funded pool
External funding
Loan Products Supported
Loans at individual level
Loans at group level
Monitoring of Loans
Limits on Loans
Group Savings
Compulsory funds, etc.
Reporting Requirements
Facilitation/Training Requirements
For each of the methodologies, we'd like to understand the specific size and parameters of the group, the products that are available and their specific configurations
Savings Groups
Savings Groups
Group Requirements
Funding Requirements
Loan Products
Saving Products
Reporting Requirements
Background & Resources
eRecording App from FSD Kenya - http://fsdkenya.org/retail-innovation/e-recording-app/
VSLAs
Group Requirements
Funding Requirements
Loan Products
Saving Products
Reporting Requirements
Background & Resources
ROSCAs/ASCAs
Group Requirements
Funding Requirements
Loan Products
Saving Products
Reporting Requirements
Self Help Group (SHGs)
Group Requirements
Funding Requirements
Loan Products
GLIM - Group Loans with Individual Monitoring
Few requirements I have seen:
a) Products (loans and savings) could be specific to each group - i.e. each group decides interest rates, duration, frequency of repayments, mandatory vs non-mandatory savings etc. So, products defined by one group should not be available for other groups. (Note: I implemented this requirement in FINERACT by treating each group as an office and defining office specific products. Some of the backend validations need to be improved though - for example: a group should not be able to create a loan with a product belonging to another group)
b) Fees are specific to each group - each group has the flexibility to define the type of fees they will charge from their members and these fee should not be applicable to all groups
c) Accounting - each group should be able to generate their own
Balance Sheet
Income statements and Profit & Loss statements
Ledger reports, etc.
Head office is more of a coordinating entity. Hence, assets/liabilities of a group does not automatically roll-up to head office. (Note: I implemented this requirement in FINERACT by using an office which is under Head Office and which will actually represent Head Office transactions. Groups will not fall under this office)
d) Transactions between Group and Head Office. Example: Head Office may charge a monthly administrative fee to each group depending on their size.There is no easy and intuitive way to collect these in Mifos - other than passing multiple journal entries - inter branch transactions followed by income journal entries at HO.
e) If groups have dividend payouts, then these could be specific to each group - amount of dividend, rules governing dividend payout etc could be customized for each group.
f) Notification rules - via SMS, email etc. - SMS involves incurring additional costs and some of the groups may decide to opt out of SMS notifications.