Saving circles preferred over banks in Pakistan

February 6, 2013
Ankur Sohanpal

Millions of Pakistanis save billions of rupees through what is called ballot committees. These are informal interest free saving circles, where the same sum is contributed by each member every day, week or month. This is practiced by housewives, students, office workers, shopkeepers, even high-society ladies, and the collector who collects the cash does it free of charge in return for receiving the first instalment of cash from this poor of savings. These savings are made typically through a year until every member has taken an instalment. The binding factor is trust as saving members are members of an already existent social circle. Read more here.



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