Page 158 - EMBRACE Book

Savings and Loans

It is estimated that almost two billion people in our world remain “unbanked”. They live day
to day on the income they make, often spending the money as fast as it is made. They have no
real concept of savings and little access to loans. If an emergency arises, they must borrow
from a friend or a market vendor that charges exorbitant interest rates. Many of the remote
villages where ADRA works do not have a bank and most of the people living there would not
qualify for a formal loan if there was one.

The EMBRACE project has encouraged people in remote villages to establish small savings and
loans groups. The idea was received with enthusiasm and has been a big success.

Leaders and treasurers were chosen by each group. Participants were taught the principles of
budgeting and saving. Now, they have access to funds to start a business, pay their children’s
tuition, cover medical bills, or handle an unexpected emergency.

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Photo: © 2019 ADRA | Frank Spangler