Contribution of village savings and loan associations to small scale farmers' welfare in Ddwaniro Sub county Rakai district

Abstract

This paper explores the contribution of Village Savings and Loan Associations towards households' welfare specifically in villages (rural areas). It looks at the back ground of VSLAs, activities they undertake and their contribution towards village small scale farmers' welfare, challenges faced by beneficiaries, reasons as to why non members didn't join VSLAs and reasons for members' participation in VSLAs. A VSLA is an accumulating savings and crediting Association (ASCA), which requires no external borrowing, it is entirely self-sufficient. Its work therefore, falls within the formal sector. It differs from a savings and credit cooperative organization (SACCO) in that it does not receive external funding, and it is not formal) registered with the government which allows it to operate with less formal book keeping and this be more user-friendly for illiterate members (Brannen, Class by 2010).