Sustainable finance in poor communities
CRS developed its community-based savings-led initiatives to reach a large group of extremely vulnerable poor people with limited savings and borrowing capacity—especially women in rural communities. Group members make regular savings deposits and are able to borrow from the group’s pooled resources; loans typically range from $5 to $30. CRS has demonstrated that these savings groups are especially effective in bringing financial services to people living in very poor, isolated areas. The model is highly replicable and sustainable. It builds on existing community relationships and fosters the mutual trust necessary to maintain integrity and responsibility in borrowing.
CRS’ outreach through savings-led initiatives has seen significant growth. Savings by members of these groups increased 43% from 2006 to 2008, to $1.5 million (figure 1). Over the same period, participation grew to nearly 800,000 people. While India predominates in terms of deposits and membership, growth is being driven by expansion in Africa, which has gone from 2,700 to 69,000 members with $573,000 in deposits.
CRS’ experience has shown that the savings-led model integrates well with projects that target people living with HIV/AIDS or their caregivers, orphans and vulnerable children, agroenterprises, water and sanitation programs, and education initiatives. We emphasize collaboration across program sectors to meet the range of community needs.
Microfinance institution development
For people in urban and periurban communities, CRS’ partners provide much-needed access to credit services through microfinance institutions (MFIs). Loans typically begin at $40. The goal for these institutions is to create strong and autonomous financial bases to grow beyond the need for subsidies and the direct support of CRS or other external organizations.
CRS has helped to build the capacity of many MFIs over the past 20 years, so that they may be able to develop and test new financial products and services for microentrepreneurs. This approach has been very effective in creating products that meet the financial needs of poor communities and has proven that poor families have the capacity to absorb capital and transform their businesses and livelihoods.


