Village banking

Village banking is a microfinance model where small groups of community members, often in rural areas, form a collective to access small loans. Each member contributes savings and, collectively, the group can borrow money to start or expand small businesses, improve agriculture, or address personal needs. The group members are responsible for repaying the loans together, fostering accountability and mutual support. This approach enables individuals with limited access to traditional banking to build financial resilience, promote economic development within their community, and contribute to poverty reduction.