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Alternative financial vehicles: rotating savings and credit associations (ROSCAs)

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  • Christy Chung Hevener

Abstract

This paper describes how ROSCAs work and discusses the benefits that accrue to ROSCA participants and some of the costs they incur. Of particular interest is the introduction of a partial data set collected from a local ROSCA, which offers a glimpse of the capital costs ROSCA participants face and which could ultimately be contrasted with the capital costs faced by borrowers at mainstream financial institutions.

Suggested Citation

  • Christy Chung Hevener, 2006. "Alternative financial vehicles: rotating savings and credit associations (ROSCAs)," Community Affairs Discussion Paper 06-01, Federal Reserve Bank of Philadelphia.
    • Handle: RePEc:fip:fedpcd:06-01
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    File URL: https://www.philadelphiafed.org/-/media/frbp/assets/community-development/discussion-papers/discussionpaper-ROSCAs.pdf
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    References listed on IDEAS

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