Savings-led Microfinance

Savings-led microfinance is a financial approach focused on encouraging individuals to save money regularly, which then becomes the foundation for accessing larger loans or financial services. Unlike traditional microfinance that primarily provides loans upfront, this method emphasizes building a savings habit first, helping clients develop financial discipline and security. Once savings are accumulated, clients can borrow against their savings, fostering responsible borrowing and repayment. This approach promotes financial stability, reduces risk for lenders, and empowers individuals to manage their finances sustainably over time.