Section 9 Informal Financial Groups

Informal financial groups refer to informal savings or lending groups and group saving schemes. Examples include merry-go-rounds, money guards, and savings collectors.

9.1 BELONG_INFML

The respondent participates in informal financial groups.

Levels:

  • Yes
  • No

9.2 R_INFML

The most important reason the respondent cites for using informal financial groups.

Levels:

  • To have a lump sum to use when it is your turn
  • To keep money safe
  • To have access to loans or credit
  • To help when there is a death in the family or any other emergency
  • It is compulsory in your clan/village
  • To socialize/meet your friends
  • To exchange ideas about business
  • To invest in bigger things by pooling money/resources together
  • The group buys you household goods or farm goods when it’s your turn
  • To increase income by lending
  • You cannot get money or help anywhere else
  • You can get money easily when you need it
  • You get motivated/get disciplined to save from saving with others
  • You can’t save at home – money gets used on other things
  • It encourages you to work harder
  • Other(specify)
  • Not belong to informal group

9.3 R_NOINFML

The primary reason the respondent cites for not belonging to any informal financial groups.

Levels:

  • You have an account in a bank or mobile money account/ other formal institution
  • You don’t have any money left for savings
  • You don’t know about them
  • You don’t need any service from them
  • You don’t trust them/People steal your money
  • Groups require too much time in meetings
  • Had previous bad experience
  • You have just dissolved your membership in one and are still debating joining another one
  • You have not found a group that suits your needs
  • Others (Specify)
  • Belong to informal group

9.4 INFML_SERVICE*

Services provided by the informal financial groups they belong to.

Variable Service received
INFML_SERVICE1 Help each other out for things like funerals
INFML_SERVICE2 Receive loan/credit
INFML_SERVICE3 Collect money and give to each member a lump sum (pot) or gift in turn
INFML_SERVICE4 Save and lend money to members and/or non-members to be repaid with interest
INFML_SERVICE5 Periodically distribute all monies held by the group to its members
INFML_SERVICE6 Save together and put the money in an account
INFML_SERVICE7 Make other kinds of investments as a group (e.g., property, business)
INFML_SERVICE8 Invest in the stock market as a group

Levels:

  • Yes
  • No