Rotating savings and credit association

"ROSCA" redirects here. For the U.S. law that limits companies' ability to force consumers to receive recurring charges without their permission, see Restore Online Shoppers' Confidence Act.

A rotating savings and credit association (ROSCA) is a group of individuals who agree to meet for a defined period in order to save and borrow together, a form of combined peer-to-peer banking and peer-to-peer lending. Members all chip in regularly and take turns withdrawing accumulated sums.

Economist F. J. A. Bouman described ROSCAs as "the poor man's bank, where money is not idle for long but changes hands rapidly, satisfying both consumption and production needs."[1]

  1. ^ F. J. A. Bouman, Indigenous savings & credit societies in the developing world in Von Pischke, Adams & Donald (eds.) Rural Financial Markets in the Developing World, World Bank, Washington, 1983