Community Finance
ROSCA
1 min read·Updated regularly
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Definition
A group where members contribute a fixed amount to a shared pot at set intervals, and one member receives the full pot each cycle until everyone has received.
Reading time
1 min
Format
Concept
Category
Community Finance Section
ConceptsDefinition
ROSCAs appear across cultures under different names: Susu (West Africa), Tanda (Mexico), Chit fund (India), Hui (China), Arisan (Indonesia), Ekub (Ethiopia). They combine forced saving, community accountability, and access to lump sums without formal credit — which is why they persist even alongside modern banking.
Examples
• 10 people contribute $50/month; each month one receives $500. • Digital variants automate contribution and selection (e.g. the Squirrelll.ing Daily Pool).
Also Known As
Susu · Tanda · Chit fund · Hui · Arisan · Ekub
References
- Ardener, S. (1964) — The Comparative Study of Rotating Credit Associations
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