VSLA Field Training

Field Officer Training Guide
Village Savings and Loan Associations

(VSLAs)
Field Officers
Training Guide
Version 1.06
December 11th 2015
Hugh Allen and Mark Staehle
Table of contents
Preface ............................................................................................................................. 3
List of acronyms .................................................................................................................. 4
Introduction for the Field Officer .......................................................................................... 5
Part
What are VSLAs? ........................................................................................ 6
Part
Schedule of operations ................................................................................ 8
Part
Preparatory meetings................................................................................... 9
Meeting A: Orientation of local leaders and government officials ................10
Meeting B: Introduction of VSL to the community ........................................11
Meeting C: First meeting with potential and newly formed VSLAs ...............12
Part
Training modules 1 - 7 ................................................................................14

Module 1:
Groups, leadership and elections .........................................15
Module 2:
Development of policies and rules for Social Fund,
Share-purchase and credit activities ....................................17
Module 3:
Development of Group constitution ......................................20
Module 4:
First savings meeting ...........................................................20
Module 5:
First loan meeting ................................................................23
Module 6:
First loan repayment ............................................................27
Module 7:
Share out/action-audit ..........................................................31
Part 5
Village Agents as trainers ....................................................................................32
Annexes ............................................................................................................................35
1
2
3
4
5
6
7
8
Election procedures ....................................................................................35

Constitution framework................................................................................36
The kit .........................................................................................................41
Field Officers consolidated guide to meeting procedures ............................42
Use of passbooks........................................................................................46
Collecting data for the SAVIX management information system ..................50
Agreement between a VSLA and a VA: Format...........................................57
Field Officer time management ...................................................................58
Preface
The purpose of this manual
This manual is part of a 2-part series: the first to be used by Field Officers (FOs) and the
second by Village Agents (VAs).
FOs are paid employees of a Facilitating Agency (FA) or its partner organisations, who
create and train Village Savings and Loan Associations (VSLAs)
VAs are community-based trainers who are not paid employees of the project
We have developed the manuals in order to provide straightforward guidance to FOs and VAs
on how to train VSLAs, reduced to the essentials. We have deliberately avoided suggesting a
step-by-step training system, since implementing organisations may have their own
pedagogical approach. Rather, we have specified what needs to be achieved and have
focused more on group-level outputs and procedures.
Whats new: Revisions to Version 1.05
This revised and updated version of the Field Officer Training Guide incorporates the
following changes
Minor changes to meeting procedures, making the role of the Chairperson clearer and
more consistently scripted. We have noted that often Record-keepers tend to take over
the role of the Chairperson, because previous versions of the manual did not clearly lay
out the Chairpersons role as a manager of the meeting, moving it clearly from step to
step. We have clarified this and added an annex in which the specific steps to be taken
by a Chairperson are clearly laid out and can be read by the Chairperson during the
meeting
Changes to loan record-keeping. In the past few years it has become clear that loan
record-keeping is the most problematic area for the Record-keeper. We have tested a
passbook in which the total amount owing by the borrower is included as a separate line,
removing the need to make a mental calculation of principal balance, service charge due
and total owing. This has been field tested extensively and is considered to have clarified
and simplified the loan repayment calculation process.
Whats new: Sharia compliance

We have also developed a Sharia compliant version (1.06). This is designed to be used in
places where members wish to be compliant with Sharia principles: specifically the prohibition
against the payment of interest. The manual suggest that a one-time loan-application fee be
charged, varying across a number of pre-determined loan size bands and to support this, we
have simplified the passbooks and modified loan meeting procedures. While this is done to
ensure that Sharia principles are respected, the record-keeping system is simpler than before
and eliminates the need for printed passbooks. This may make the manual suitable for use in
areas of low literacy. This Sharia compliant manual can be separately downloaded from the
www.vsla.net website
Hugh Allen and Mark Staehle
December 11th 2015
Solingen, Germany
List of acronyms
CARE......................................................... Cooperative for Assistance and Relief Everywhere
FA ................................. Facilitating Agency. Trains and finances Implementing Organisations
FO ......................................................................................................................... Field Officer
MMD ......... Mata Masu Dubara (Hausa for Women on the Move), CAREs oldest VSL project
MFI ....................................................................................................... Microfinance Institution
NGO ...................................................................................... Non-Governmental Organisation
SG ..................................................................................................................... Savings Group
TShs ..................................................................................... Tanzania Shillings (officially TZS)
VA ........................................................................................................................ Village Agent
VSL ................................................................................................... Village Savings and Loan
VSLA or Association..................................................... Village Savings and Loan Association
Introduction for the Field Officer

Congratulations on being selected as a Field Officer (FO) to
train and support Village Savings and Loan Associations
(VSLAs). VSLAs are the oldest form of what are now being
referred to in the industry as Savings Groups (SGs). There
are now over 11 million people in SGs, worldwide, of which
nearly 10 million are in Africa. Savings Groups are
changing the face of microfinance and, for the first time,
bringing sustainable financial services to the rural poor.
VSLAs will succeed only through your efforts: you are at the
heart of the programme.
The FO is a paid employee who starts by working directly to
create VSLAs and, managed by a full-time Supervisor,
takes on a training caseload of between 10 and 15 VSLAs.
The Field Officer is given this responsibility because the
first VSLAs created in a community will set an example and
it is important that they should be successful and operate in
the correct way. Where good VSLAs have been created
we have seen large numbers of new VSLAs springing up and copying what the foundation
groups are doing. Thus, ensuring that the groups you create are of very high quality is vital if
spontaneous replication is to continue. That is why it is more important to focus on the quality
of these first VSLAs than it is to create a large number.
Once the FO succeeds in creating the first VSLAs s/he will watch the members carefully to see
if there are people in the group who could also take on the job of training VSLAs. After 6 -9
months the FO will choose a total of between 6-8 people who can do this work (selected from
among their 10 - 15 VSLAs) and will train them to become trainers too. These people are
called Village Agents (VAs) and the idea is that they should come from the communities they
serve and, over time, create between 3 - 6 VSLAs of their own, every year, charging fees for
this service, or investing in the VSLAs that they serve. Over subsequent years, the FO will
create only a few more VSLAs and will spend most of his/her time as a supervisor of VAs.
After a year of supervision, the FO and the FOs Supervisor will formally examine each VA
and, if they pass the examination, the VA will become a certified, independent provider of
VSLA training services, making a steady income. At this point the FO will move to another
area and start the process again.
Thus, the FO is not just training VSLAs, but setting up a self-financing system of sustainable
service delivery that will allow new VSLAs to be continually created. As such, your role needs
you to be skilled as a trainer, a good planner and manager and always concerned about high
quality. It is very important that you focus on discipline and procedure as you train and advise
VSLAs and as you supervise VAs. This is what makes VSLAs successful. You should follow
the procedures carefully, and teach your VSLAs to do the same.
The results of your efforts will be permanent and you will find the work satisfying. Good luck.
What are VSLAs?
A Village Savings and Loan Association (VSLA) is a group of 10 - 25 people who save
together and take small loans from those savings. The activities of the VSLA run in cycles of
about one year, after which the accumulated savings and profits are shared out among the
members according to the amount they have saved.
VSLAs are member-managed. Programme staff (FOs) and Village Agents (VAs) will train
members, but never manage the VSLA, write in the passbooks or touch money belonging to
the members.
VSLAs are trained by Field Officers (salaried programme staff) or Village Agents (who receive
fees from the VSLAs for the training). Village Agents are members of VSLAs who are
identified as having the skills to train other VSLAs. The role of a VA is to:
train new VSLAs
assist VSLAs they have trained when they would like assistance between cycles (shareouts, membership changes, modifying the constitution, elections)
provide refresher training
assist in resolving conflicts
The first cycle of VSLA is a training and supervision cycle lasting at least 36 weeks. During the
first cycle, the Groups will meet weekly. This may change, as the group sees fit, thereafter.
Members save through the purchase of between 1 5 shares every meeting. The share-value
is decided by the VSLA at the start of each cycle. At each meeting all members have the right
to buy between 1-5 shares. The share value cannot change during the cycle.
Members can choose to have a Social Fund, to use for small grants when members are in
distress. This is mandatory in the first cycle, but optional in future cycles.
The Loan Fund is comprised of money contributed in the form of shares, fines and service
charges (interest)
The monthly service charge for loans is determined by the members at the beginning of the
cycle, in the form of a percentage value. It cannot be changed during the cycle.
All members have the right to borrow up to a maximum of 3 times the value of their shares
Loans are taken and repaid once every 4 weeks. All loans should be repaid within a maximum
of 12 weeks during the first cycle. The borrower is free to pay in whatever amounts s/he
wishes at each loan meeting, but must repay the total sum owing within the agreed-upon
period.
All VSLA transactions are performed at meetings in front of all the members. To ensure that
transactions do not take place outside VSLA meetings, cash and passbooks are locked in a
cash-box secured with three padlocks. The three keys are held by three members, none of
whom is a member of the Management Committee.
Theft of boxes by outsiders is very rare, but members must take responsibility for security.
All members have an individual passbook. Share purchases are recorded in the first half of
the passbook using a rubber stamp. Loans are recorded in the back of the passbook. Loan
Fund and Social Fund balances are noted by the Record-keeper in a notebook and memorised
by all members at each meeting.
Passbooks remain locked in the box between meetings. This is very important, to prevent
tampering with the records of shares purchased by the members, or alteration of loan records.
The Group has a five-person Management Committee elected for one cycle. Groups develop
a Constitution that contains the Social Fund, Share-purchase and Loan policies of the Group.
Each member has one vote in electing the Management Committee and developing the
constitution.
At the end of every annual cycle, all outstanding loans are recovered and the Loan Fund is
shared out. The Loan Fund (which includes profits) is divided by the total number of shares
purchased by members during the cycle, to calculate the share value. Each member then
receives his or her pay-out according to the number of shares purchased. In this way no
complicated calculation of profits is needed.
Schedule of operations
VSLAs are trained by Field Officers (FOs) over a period of at least 36 weeks according to the schedule below.
Preparatory phase:
Intensive phase:
Development phase:
Maturity phase:
This provides general information to prospective VSLA members. They will decide if they want to be trained.
12 weeks. It starts off with 4 visits in the first week, and then continues with 6 visits over the next 11 weeks.
12 weeks. 3 visits during loan meetings only.
12 weeks. 2 visits; one for light supervision and one to help the VSLA prepare for share out and graduation.
Figure 1: VSLA training and supervision schedule
Note: The red circles indicate the Supervisor's attendance at: the first savings meeting; the two phase changes; and the Action audit/share-out.
Note: The FO may increase the frequency of visits in the Intensive Phase and may also prolong it if additional time is needed to get the VSLA
to a position that it can confidently manage share-purchase unaided. The frequency of visits in the Development phase need not be increased,
because they all fall on loan disbursement and repayment meetings.
Preparatory meetings
The Preparatory Phase has three purposes:

To obtain permission by local authorities and leaders to work in a particular are and to enlist their support in organising a public meeting to
outline how the programme works
To describe to a public gathering how the programme works and how people may get more information
To provide a detailed description of how a VSLA works; what people have to do to participate and what the FO promises to do
Table 1 below lays out the order in which these meetings take place and the content
Table 1: Preparatory Meetings
Meeting A
Meeting B
Meeting C
Supervisor and FO orient local

leaders and government
officials
FO introduces VSL to the

community
First meeting of FO with newly formed groups
Content
Introduction of the
Implementing Organisation.
Target group to be served
Services offered.
Role of local leaders and
administrators.
How the methodology works.

How interested individuals can
form new VSLAs
Comments
This may take more than one

meeting and may involve
Regional, District and
Locational/Ward officials
before reaching communities
Type of
meeting
Open meeting. Anyone can

attend. Usually at a public
place like a market, school,
church, mosque etc.
Step-by-step description of how VSL works

Qualities of good members
VSLA and FO obligations
Training schedule
Date and place for first Training
Attended only by people who are committed

to joining a VSLA and who show this by
having formed themselves into a group
Meeting A:
Orientation of local leaders and government

officials
A project should inform Government administrators and line ministries at different levels about
what it wants to do. Usually this will start at the District (or its equivalent), and continue
downwards from there to the targeted local community. This may take more than one meeting.
Most important will be community level administrators and traditional leaders. These are the
people who can arrange a public meeting and who can contact influential community leaders.
What is covered in this meeting?
The Supervisor introduces him/herself, the project and the Implementing Organisation and
also introduces the FO
Project purpose and goals: to build the capacity of community groups to be able to
mobilise savings, use these savings to start a loan fund and to create a social fund for relief
of members experiencing emergencies
VSLAs will provide:
The opportunity to save and borrow flexibly as they need, and make attractive profits
on their savings. Very poor people will find that VSLAs meet most of their needs for
savings and credit, because there are no problems of high minimum deposit
requirements, hidden charges, complicated procedures, or difficulty in accessing loans.
VSLAs can assist members in case of death, disease or natural disaster; local
moneylenders may not be willing to provide this service to the poorest.
VSLAs help members build self-respect, self-reliance and self-confidence
History of the project and of similar projects worldwide. There are more than three million
poor people successfully managing their VSLAs throughout the world. More than 90% of
VSLAs succeed and remain together for several years or more.
VSLAs are taught to manage their own activities over a cycle of nine months to one year.
An FO will attend most of the Groups meetings to train and assist them. After the first
cycle, the Group manages its own affairs.
After a year the FO will select people from the VSLAs they have started to be trained and
to carry on this work for a fee. This will create new local jobs and ensure that VSLAs have
a person in the community who can help them solve their problems.
The FO promises the following to the community:
Reliability
Integrity
Establishment of a sustainable service that enjoys community support and has an
important economic impact. Women in particular can expect to benefit.
What the Supervisor needs from Government and Community Leaders:
Permission for the FO to work in the area
Mobilisation of the community to attend a public meeting, at which the VSL
methodology will be explained and community groups invited to participate
Feedback: the Supervisor should take questions and ask for feedback.
Public meeting arrangements: The FO makes sure that someone is made responsible for
arranging a public meeting and a date set is at which the FO can meet with the community.
The public meeting should bring together 50 - 100 potential VSLA members as well as local
leaders (such as religious leaders and prominent local business people) who can spread the
word to other communities. The place and date of the public meeting should be agreed at this
point, so that the FO can schedule an appearance.
10
Meeting B:
Introduction of VSL methodology to the

community
This should be a large, open gathering which is announced well in advance through the help of
local leaders. There will be many questions. The goal of this meeting is to generate interest,
so that many potential groups come to meeting C.
What to explain:
The purpose is to create community-managed savings and loan groups that belong to their
members.
The promotion of VSLAs is not a government programme.
All of the funds used to provide loans to the members come from the members own
efforts. The programme does not provide any money to VSLAs for lending to its members.
The size of the Group must be not less than 10 members and not more than 25.
Groups will be sold a metal box that has three locks on it and which contains all of the
materials needed to run a VSLA. This box cannot be opened between weekly meetings.
VSLA members will be taught to save regularly, to take short-term (3-month) loans from
that savings, and to share out the savings and profits each year according to each persons
contributions.
All borrowers have to pay a monthly service charge in order to receive a loan. The amount
is a percentage of the value of the loan. The percentage is decided by the members
At the end of one year all loans are paid back and all of the VSLAs money is shared
among the members in proportion to the amount that each person has saved. This
includes and profit that the VSLA has made.
The FO is only there to teach them the system. Members will manage their activities
themselves, and the FO will never:
Handle the Groups money
Write in the Groups records
Take the cash-box away
Ask for a loan
Ask for a gift
Training and supervision takes approximately 9 months. After this, the VSLA is
independent and continues to operate without any more help, although the FO will continue
to be available for advice and support.
The FO will carry on this work for about a year in the locality. During that time (s)he will
identify a number of local people who nwill be trained to carry on the work. (S)he will be
their supervisor to make sure that the quality of the VSLAs remain high.
The members of the proposed Group choose where and when the meetings are to be held.
The FO then tells the assembly that (s)he will return to the community at an agreed time to see
if people are interested and will then make training arrangements. Those who are interested
must form groups of between 10 - 25 members before Meeting C. The FO stresses the
following before closing the meeting:
Members must know and trust each other
Leaders are not elected until after training begins
11
Meeting C:
First meeting with potential VSLAs
This meeting is only attended by people who are interested to be in a VSLA, and who have
already gathered in groups of 10 - 25 people who know and trust each other.
What to explain:
The FO describes the basic features of a VSLA:
A VSLA is created so that people can save, borrow and start an insurance fund
Members are self-selected and the VSLA is managed by its members
Every Group has a written constitution and clear rules
Some rules such as the amount of savings, or the service charge on loans are decided by
the members
Some rules, such as the need for annual elections, are already fixed because this has
been shown to be important
Every Group has a Management Committee which is democratically elected and changed
every year
Members must attend all meetings, and buy at least 1 share each meeting
There are fines for lateness and missing meetings
A group allows all members to buy between 1-5 shares each week. The price of a share is
set by the members
The money collected from the purchase of shares is used to provide small loans to
members, which are repaid over a period of not more than 3 months
All borrowers have to pay a service charge on their loans, at a percentage rate decided by
the members
There is a Social Fund from which members can receive small grants for emergencies
All of the Groups cash is kept in a box with three locks, and the keys are kept by three
different members of the Group who are not part of the management committee
The box can only be opened in meetings, so all transactions are done in front of all of the
members
Record-keeping is based on simple passbooks and memorisation of important information,
such as the amount of cash in the box and who owes money to the Social Fund
Each member has a passbook in which their savings and loans are recorded
The passbooks are locked in the box between meetings to prevent anyone changing the
entries
The members decide on a period for operation of the VSLA before they share out their
profits. This is called a cycle and is never less than 9 months or longer than 12 months
At the end of each cycle, all loans are repaid, and all savings and profits are distributed to
members according to the number of shares they have purchased
The box and its contents will be supplied by the programme and must be paid for by the
Group. This will involve a down-payment of not less than 25%, payable at the start of the
second training module, with the balance being paid before the end of the cycle. If there is
a balance at the end of the cycle, the Group must pay the due amount from the loan fund
prior to sharing out.
The training and supervision period is a minimum of 36 weeks and a maximum of 52
weeks. After this period, the VSLA continues to operate independently without any
external support.
During the training period the VSLA will meet weekly, and the FO will visit 15 times
Once the VSLA becomes independent, the FO will only attend meetings if requested by the
members
12
The FO explains that there are 7 training modules:
Members, Leadership and Elections

Social Fund, Share-purchase and Credit Policies
Development of Group Constitution
First Savings Meeting
First Loan Meeting
First Loan Repayment
Action-audit / Share-out and graduation
Members must be aware of the qualities that are needed in a member. So the FO reviews the
qualities of a good member, and suggests that anyone who is not able to meet these
standards should probably not join. Good members will:
Know each other and be from a similar economic background

Not live too far from where the meetings will be held
Have a reputation for honesty and reliability
Be able to attend all meetings
Attend all meetings on time
Follow all rules
Have a cooperative personality. Someone who is known to create conflict should probably
not join
Be able to buy at least one share each week
Be able to repay loans on time
There is only one member from the same household. It is better if members from the same
household join different VSLAs
The FO and the new Groups arrange a time and a place for the first training.
IMPORTANT
The FO should never train more than one VSLA at the same time and place. All VSLAs
should be trained individually.
13
Training modules 1 - 7
Table 2: Diagram of training schedule

Module 1
Groups,
Leadership and
Elections
Module 2
Social Fund,
Share-purchase
and Credit Policies
Module 3
Development of
Group
Constitution
Individual selfselection
Role of
General
Assembly
Roles of
leaders
Preparation for
elections
Elections
Policies and rules

related to:
The Social
Fund
Share-purchase
Credit
Loan
repayment
Group
governance
Combining
Module 2
policies and
rules with
governance
decisions into
single
constitution
Week 1
Module 4
First Savings
Meeting
Module 5
First Loan
Meeting
Supervision of
first meeting in
which cash is
handled
Contribution to
Social Fund,
Sharepurchase
Supervision of
first loan
disbursements
Week 4
Module 6
First Loan
Repayment
Supervision
of first loan
repayments
Week 8
Module 7
Action-audit /
Share-out and
graduation
Distribution of
the Loan Fund
at the end of
the cycle
End of cycle
14
Module 1: Groups, leadership and elections

Purpose of the meeting
The FO explains that the purpose of the meeting is to give the Group a name and to elect
leaders who will be its managers for a period of one year. (S)he explains that elections are
held every year and the next elections in one years time will also be facilitated by the FO.
Individual self-selection
The FO again reviews the qualities of a good member, and suggests that anyone who does
not meet these criteria should probably drop out before the next meeting. Good members will:
Know each other and be from a similar economic background

Not live too far from where the meetings will be held
Have a reputation for honesty and reliability
Be able to attend all meetings
Attend all meetings on time
Follow all rules
Have a cooperative personality. Someone who is known to create conflict should probably
not join.
Be able to buy at least one share each week
Be able to repay loans on time
There is only one member from the same household. It is better if members from the same
household join different VSLAs.
Elections
The group chooses a name for the VSLA

The FO explains:
All members have the same rights
The Management Committee is elected by the members, who can also dismiss it for
poor performance
The Management Committee serves for one year, after which a new committee is
elected
(S)he then reviews the qualities needed for each position and the work that each person
chosen needs to do, using the tables below:
Table 3: Qualities and responsibilities of the Group Chairperson
Qualities
Respected in the community
Confident and calm when speaking in
front of others
Treats everyone equally
Listens to others and asks for opinions
Organised
Always on time
Responsibilities
To call the meetings to order, announce the
agenda and lead discussions
To ensure that the meetings follow proper
procedure and that the Constitution is
followed and respected
To maintain discipline and charge fines as
needed
To facilitate discussions and to ensure that
everyones views are listened to
To resolve conflicts
To represent the Group to outsiders and
non-members, including local government
officials.
15

Table 4: Qualities and responsibilities of the Group Record-keeper
Qualities
Good arithmetic skills
Writes neatly
Has a reputation for trustworthiness
Always on time
Willing to work extra hours to train with
the FO if needed
Responsibilities
Ensures that all transactions for the Social
Fund, Share-purchase and lending take
place according to procedure, and that all
rules are followed
Makes all passbook entries for shares and
loans
Reads the Social Fund and Loan Fund cash
balances out loud at every meeting
Table 5: Qualities and responsibilities of the Group Box-keeper
Qualities
Trustworthy
From a household that has a good
reputation (no one in that household
should be considered unreliable)
Responsibilities
Keeps the Group box safe in between
meetings
Ensures that (s)he is accompanied to/from
meetings as necessary
Lives in a house with good security
Brings the box to the meetings on time
Always on time
Stands in for the Record-keeper when the

Record-keeper is absent
Table 6: Qualities and responsibilities of the Group Money-counters
Qualities
Able to count quickly and accurately
Trustworthy
Calm and organised
Always on time
Responsibilities
Counts all amounts paid to, or taken from
the VSLA
Informs the Record-keeper of the correct
amount to be recorded in the passbook
The FO then organises the election of the officials, starting with the Chairperson. (S)he uses
the standard procedures shown in Annex 1.
16
Module 2: Social Fund, share-purchase and credit policies

The FO says that the purpose of the meeting is to develop a set of rules concerning how the
members of the Group will save by buying shares, how they will take out loans and pay them
back, and how they will offer insurance to their members through a Social Fund.
Seating arrangements
The diagram below shows how members are seated in a meeting. This seating arrangement
is very important for two reasons:
It allows all members to see clearly what is happening

It ensures that all members transact in order
The diagram shows a VSLA with 18 members. The number can be bigger or smaller.
Figure 2: Layout of meeting place: Group with 18 members
1.
Chairperson
2. Record
Keeper
Fines
bowl
Table
3. Box
Keeper
4. Money
Counter
5. Money
Counter
Moneycounting
bowl
Stool
18
17
16
15
14
13
12
11
10
The FO starts the meeting by seating the

members according to this arrangement.
17
Social Fund
The FO says that the Group may wish to create a Social Fund to provide grants to members
who encounter serious problems (this is an optional service and a Group may decide not to
create a Social Fund). Grants are often made to help with:
Funeral expenses
Catastrophes, such as fire damage or house damage
Loss of livestock
The Group then decides what the amount of regular contributions to the Social Fund should
be. The FO says that:
The Social Fund is kept separately from the Loan Fund, in its own bag
The Social Fund is used for grants, not loans
The constitution lists the pay-outs for death of the member and his or her relatives; the
Group can decide to make payments for other types of losses if it wishes
Share-purchase rules
The FO says that members save in a VSLA by buying shares. At each meeting, each member
has the opportunity to purchase between 1 to 5 shares. (S)he asks what the value of a share
should be. (S)he the explains:
The amount is too big if the poorest member will have trouble regularly saving at least one
share
During a lean season of the year the amount is too small if better off members feel that 5
shares will still be too little
Lending rules
The FO says that while members can save every week they can only borrow once every four
weeks. Borrowing once every four weeks:
keeps the other three meetings short

keeps record-keeping simple (loans in every meeting make records very complicated)
allows the Loan Fund to build, so that members can borrow useful amounts
The Group is then asked for what purposes loans will be given. The FO says that members
should not take out loans that they cannot repay easily
The FO says that the amount borrowed by any member cannot be more than three times their
savings. (S)he explains that this is best, to ensure everyone has fair access to loans, and that
loans are not too risky.
The Group is then asked for how long members should be allowed to take out loans. The
maximum loan duration should not be more than 3 months. Once the Group has decided on
the longest time that members can take out loans, the FO writes this down.
The FO explains that when members take out loans they have to pay a service charge every 4
weeks. This is a fee paid to the Group for being able to borrow, but which ends up back in
members pockets at the annual share out. The Group should then decide how much the
service charge should be, and the FO writes it down. The FO explains that the monthly
service charge is a percentage:
based on the loan amount

is paid every 4 weeks
the same amount every month until the loan is fully repaid
If the members are confused about what service charge the Group should choose, the FO can
give the following guidance:
18
A service charge that is very low may tempt members to borrow more than they can easily
repay. For this reason, it should not be less than 5%
A service charge which is too high will discourage members from borrowing, and make the
VSLA less useful. For this reason it should not more than 10%.
A service charge of 10% is easy to calculate (a loan of 1,000 attracts a monthly service
charge of 100 at each loan meeting)
Safety of Group funds

The FO hands over the Group kit (see Annex 3), receives the 25% down payment and tells the
Group that the balance must be paid by the end of the cycle.
VSL programmes must use
lockable boxes. The reason
for using three locks is to
keep member money and
records safe and to make
sure that transactions cannot
take place privately between
meetings.
19
Module 3: Development of Group constitution

Before going to this meeting, the FO goes to Annex 2 and makes a copy of the blank
Constitution form. The FO takes this with him/her to the meeting.
The blank constitution form in Annex 2 allows the FO to write down Group decisions. Part of it
is already fixed, because experience has shown that some things should be common to all
VSLAs. Decisions that the Group needs to make for itself are shown as underlined blank
spaces.
The FO explains that the rules developed in the previous meeting will be included in the
Constitution, but that this meeting will concentrate on the rules that help the Group govern
itself, including the decisions already made about the Social Fund, share purchase and loans.
The FO goes through the blank form, item by item and helps the members to reach agreement
on each clause. The FO then helps them to fill in the blank spaces. The FO should never
think that (s)he knows what the Group will decide and fill out the form before going to the
meeting.
Once the form is filled, all the members will then sign the constitution to show that they agree.
The VSLA should not rush these discussions or feel pressured to get this done in one meeting.
Experience has shown that sometime this session can take two (or even 3) meetings to finish.
The final step is for the FO to facilitate a discussion to agree on the most important rules laid
out in the constitution. Once these have been identified, the Chairperson gives every member
a different rule, which they will be expected to repeat out loud at each meeting. The
Chairperson tells them that if they do not remember the rule they will be fined. The
Chairperson notes which member must remember which rule.
Module 4: First savings meeting

The FO tells the members that this meeting will be the first chance they have to buy shares
and that (s)he will guide them through the steps. The FO then explains that from now on (s)he
is only there to support the Management Committee, which is now in charge of meetings.
The kit and the Key-holders

The Group is told that the safety of the kit will be the responsibility of the Box-keeper and that
(s)he must carry it to every meeting of the Group.
The FO tells the members that although they have appointed their Management Committee, it
is necessary to appoint three people, to be called Key-holders, who will keep the keys, so that
the box can only be opened in meetings. They can be identified by discussion and the
following criteria are important:
They must not be members of the Management Committee

They should not be members of the same family
They should be members who can be relied upon to attend and will always be on time
Managing a meeting: General

At this point, the Management Committee will be learning only how to conduct a savings
meeting. The FO should explain again that the first loan meeting will not occur for another 3
weeks.
20
The FO uses Table 7 to facilitate the first savings meeting and refers to Annex 5 to
demonstrate to the Group the share-purchase system and savings records in the
member passbook. This should be studied by the FO beforehand.
Table 7: Procedures for first savings meeting
Meeting step
First savings meeting Procedures
1. Meeting
opening
The Chairperson calls the meeting to order

The Chairperson tells the Record-keeper to perform a roll call
The Key-holders open the box, which remains in front of the Box-keeper,
and the materials are taken out and placed in front of the Record-keeper
The fines bowl is placed in front of the Chairperson, so that fines can be
collected during the meeting
The Record-keeper calls each member in number order to the front and
gives them their number card and tells them that they must always bring
it with them to all meetings
The Record-keeper writes their name and number on a passbook but does
not give the passbook to the member
2. Social Fund
The Chairperson tells the Record-keeper to conduct the Social Fund

activities and reminds the members of the amount they must all
contribute
The Record-keeper calls each member, by number, to give their Social
Fund contributions to the Money-counters
When the member comes forward, they give their Social Fund
contribution to the Money-counters and are given their passbook
As each member comes forward, the Chairperson reminds them of the
particular rule from the Constitution that they have been allocated to
recite in every meeting. Members are told that they must do this when
they come to collect their passbooks at the time of making a contribution
to the Social Fund.
Both Money-counters confirm that each member has given the right
contribution and place it in the money-counting bowl
When everyone has contributed, the money counters count the total
amount in the money-counting bowl and announce this to the members
The Record keeper records this amount in the note book
The Record keeper says that everyone should remember this amount for
the next meeting
The Social Fund money is then replaced in its draw-string bag and put
back in the cash-box
(if the group

does not have
a Social Fund,
skip to step 3)
3. Sharepurchase/
savings
The Chairperson tells the Record-keeper to conduct the Sharepurchase/savings activities

The Record-keeper calls each member to the front by their number
Each member comes to the front and buys between 1 - 5 shares, giving
the money to the Money-counters and their passbook to the Recordkeeper
The Money-counters count the money, place it in the money-counting
bowl and announce the amount and the number of shares that have
been purchased by the member
The Record-keeper stamps the correct number of shares into the
passbook and crosses out any unused blocks
The member then checks that the number of new stamps in the
passbook is correct: the passbook remains with the Record-keeper for
the rest of the meeting
21

4. Expenses
The Chairperson asks the Record-keeper if there will be any expenses for
stationery before the next meeting. If any expenses are approved by all of
the members, the Chairperson instructs the Money-counters to take the
necessary amount from the money-counting bowl and give it to the
member who is responsible for paying the expense.
5. Calculating
the Loan
Fund
balance
The Chairperson then tells the Money-counters to combine the money in

the fines bowl and the money-counting bowl and to count it
The Money-counters then count the money and announce the amount
The Record-keeper then tells the Group that this money constitutes their
Loan Fund
The Money-counters place the Loan Fund in its draw-string bag and put it
in the cash-box
6. Closing
balances
The Chairperson then tells the Record-keeper to summarise the amounts

in the two funds
The Record-keeper announces the total amount in the Social Fund once
again, and instructs all members to memorise it for the next meeting
The Record-keeper announces the total of the Loan Fund once again, and
the instructs all members to memorise it for the next meeting
The Key-holders are called by the Chairperson to lock the box
7. Closing
The Chairperson invites members to discuss any other subject that may
be of interest
The Chairperson announces the date and time of the next meeting and
reminds everyone to come with their Social Fund contributions and
Share-purchase money
The Chairperson tells the members that they will be able to request a loan
at the first loan meeting, three weeks from the date of this meeting
Once discussion is complete, the Chairperson closes the meeting
Note: For the two visits after this meeting (between Training 4 and Training 5) the FO should
use Annex 4: Field Officers consolidated guide to meeting procedures
The Record-keeper enters the following data in his/her notebook at the end of every meeting:
Table 8: Weekly Record of Balances - Example
Date
Cash in Social Fund bag
Cash in Loan Fund bag
4/1/10
TShs 24,600
TShs 144,600
Note: Please click on or enter the URL below in your browser to view a short video that shows
how a well-trained group conducts its normal savings activities https://vimeo.com/132692474
This video shows savings procedures in AKF Tanzanias Boresha Maisha project
22
Module 5: First loan meeting

This meeting takes place 3 weeks after the first savings meeting (see Figure 1, page 7). The
FO tells the members that this meeting will be the first chance they have to borrow, once
Social Fund and share purchase activities are completed.
First disbursement of loans

The FO says that loans will be taken and repaid thereafter every four weeks. This is very
important and the FO must not permit a group to disburse loans at every meeting. This is
necessary to:
Keep most meetings short

Keep record-keeping simple and understandable for the members and the Record-keeper
Allow the Loan Fund to build between loan meetings
The FO uses Table 9 (on the next page) to facilitate the first loan meeting and refers to Annex
5 to help the VSLA understand the loan record-keeping system. This should be studied by the
FO beforehand.
23

Table 9: Procedures for first loan meeting
Meeting step
First Loan Meeting Procedures
1. Meeting
opening

2. Social Fund

contribute
The Record-keeper asks the Group to recall the balance of the Social
Fund from the previous meeting
The Money-counters then remove the money from the Social Fund bag,
place it in the money-counting bowl, count it, and announce the amount
to the members
The Chairperson announces that contributions will be made to the Social
Fund
Fund contribution to the Money-counters
When the member comes forward, they recite the rule, from the
Constitution that they have been given to remember by the Chairperson.
At the same time they give their Social Fund contribution to the Moneycounters and are given their passbook
The Record-keeper then asks if any member has missed a payment to the
Social Fund in the last meeting. If so, they are asked to pay it now.
The Record-keeper then asks if anyone needs a grant from the Social
Fund. Members in need make their request to the Group.
If a majority of the members approve the grant, the money is provided to
the member according to the Constitution
The Money-counters count the total amount remianing in the moneycounting bowl and announce this to the members
The Record-keeper records this amount in the note book
The Record-keeper says that everyone should remember this amount for
the next meeting
(if the group

does not have
a Social Fund,
skip to step 3)
24

3. Sharepurchase/
savings

The Record-keeper asks the members to recall the balance of the Loan
The Money-counters then remove the Loan Fund from its bag and count
it, announcing the amount to the members
Once it is agreed that the amount remembered and the amount counted
are the same, the money is placed in the money-counting bowl
The Chairperson announces that members will now buy shares
bowl and announce the amount and the number of shares that have been
purchased by the member
The member then checks that the number of new stamps in the passbook
is correct: the passbook remains with the Record-keeper for the rest of
the meeting
(If a member needs to make a withdrawal, they will ask for it instead of
buying shares. When a withdrawal is needed, the Record-keeper will
cross out the number of shares from the members passbook that
corresponds to the value of the withdrawal and the Money-counters will
give the money from the money-counting bowl. The value of a share paid
back to the member will be equal to its original purchase price.)
4. Expenses
The Chairperson asks If any money was given for expenses in the
previous meeting and, if so, to give an account
If so, the person who made the expenditure gives an account and returns
any change to the Money-counters, who place it in the money-counting
bowl
5. Calculating
the new
Loan Fund
balance
The Chairperson then tells the Money-counters to combine the money in

the fines bowl and the money-counting bowl and to count it
The Money-counters then count the money and the Record-keeper
announces the total to the Group
The Record-keeper then tells the Group that this is the money available
for lending in this meeting
25

6. Loan taking
The Chairperson then invites loan requests, reminding members of the

maximum loan term (in weeks) and loan amount (three times the
members savings)
Each member who wants a loan then makes a request out loud to the
Group, announcing 1. the amount they want to borrow, 2. the purpose of
the loan and 3. over what period of time they expect to repay
The Record-keeper first checks to see that the member has saved at least
1/3 of the amount they want to borrow. If they have not saved enough
they must reduce the amount of their request
The Record-keeper then calculates the total value of the loans requested
and announces it
If the total requested is more than the money available in the Loan fund,
the Group must discuss adjustments to the individual loan amounts until
all members are satisfied
Once it is decided how much each borrower will receive, the Recordkeeper calls each borrower to the front in order of their number
The Record-keeper then enters the Loan number and notes End to show
the meeting when the loan must be fully repaid
The Record-keeper then enters the value of Loan taken (Loan balance)
and Service charge and enters the total in the Total owing box in the
members passbook
The Record-keeper instructs the Money-counters to give the borrower the
loan amount from the Money-counting bowl
The borrower then counts the money, and signs the passbook
The Record-keeper then instructs the borrower to announce out loud the
total amount due and after how long it will be due to be repaid
This process is repeated until all loans have been issued
The Record-keeper tells the Money-counters to count the money
remaining in the money-counting bowl and announce it to the Group
Loan Fund
The Money-counters then place the Loan Fund in its draw-string bag and
put it in the cash-box
7. Closing
balances
8. Closing
The Chairperson then tells the Record-keeper to summarise the amounts

in the two funds
The Record-keeper announces the total amount in the Social Fund once
again, and instructs all members to memorise it for the next meeting
The Record-keeper announces the total of the Loan Fund once again, and
the instructs all members to memorise it for the next meeting
The Key-holders are called by the Chairperson to lock the box
be of interest
The Chairperson announces the date and time of the next meeting
Note: For the single visit between Training 5 and Training 6 the FO should use Annex 4: Field
Officers consolidated guide to meeting procedures (page 42)
26
Module 6: First loan repayment

This meeting takes place 4 weeks after the first loan disbursement (see Figure 1, page 7). The
FO tells the members that this meeting will be the first time that the Association will receive
loan repayments and (s)he will guide them through the steps.
First repayment of loans

The FO reminds them that loans will be taken and repaid every four weeks, even if the Group
meets weekly.
The FO uses Table 10 to facilitate the first meeting with loan repayments and refers to Annex
5 to help the VSLA understand the loan record-keeping system.
Table 10:
Procedures for a loan meeting with first loan repayments
Meeting step
Loan Meeting with First Loan Repayments Procedures
1. Meeting
Opening

2. Social Fund

activities and reminds the members of the amount they must all contribute
The Record-keeper asks the Group to recall the balance of the Social Fund
from the previous meeting
to the members
Fund
the next meeting
(if the group

does not have
a Social Fund,
skip to step 3)
27

3. Sharepurchase/
savings

The Money-counters then remove the Loan Fund from its bag and count it,
announcing the amount to the members
are the same, the money is placed in the money-counting bowl
Each member comes to the front and buys between 1 - 5 shares, giving the
money to the Money-counters and their passbook to the Record-keeper
is correct: the passbook remains with the Record-keeper for the rest of the
meeting
4. Expenses
bowl
5. Loan
repayment
The Chairperson asks borrowers to identify themselves by number

By referrring to the member passbooks, the Record-keeper confirms the
identity of the borrowers and the amount due from each borrower
Each borrower is then called to the front to give their payment to the
Money-counters. It must not be less than the service charge due.
The Money-counters count the payment, announce the amount and place
it in the Money-counting bowl
The Record-keeper enters the payment amount in the members passbook
in the Paid box
The Record-keeper then calculates the remaining balance due and enters
it in the Balance box in the borrowers passbook
The Record-keeper then calculates the service charge due in the next
meeting and fills in the Total owing box.
The borrower then signs in the space provided.
If the remaining balance due is zero, the Record-keeper signs the
passbook and announces that the loan is repaid, cancelling the loan with a
diagonal red line drawn through the page
28

6. Calculating
the new
Loan Fund
balance
When loan repayment is complete, the Chairperson then tells the Moneycounters to combine the money in the fines bowl and the money-counting
bowl and to count it
The Money-counters count the money in the Money-counting bowl and the
Record-keeper announces the amount to the Group
The Record-keeper then tells the Group that this is the money available for
lending in this meeting
7. Loan taking

maximum loan term (in weeks) and loan amount (three times the members
savings)
1/3 of the amount they want to borrow. If they have not saved enough they
must reduce the amount of their request
and announces it
The Record-keeper then enters the value of Loan taken (Loan balance) and
Service charge and enters the total in the Total owing box in the
members passbook
The Record-keeper then instructs the borrower to announce out loud the
total amount due and after how long it will be due to be repaid
Loan Fund
8. Closing
balances
The Chairperson then receives the notebook from the Record-keeper and
announces the total amount in the Social Fund, innstructing all members
to memorise it for the next meeting
The Chairperson announces the total of the Loan Fund once again, and
instructs all members to memorise it for the next meeting
The Chairperson then asks the Key-holders to lock the box
9. Closing
be of interest
In all meetings from now on, the FO uses the Field Officers consolidated guide to meeting
procedures, Annex 4. This should be laminated in plastic and always carried in the field.
29
Development and Maturity Phases

Figure 3: Transition to the Development Phase
The FO should schedule a visit for his/her Supervisor to attend at the end the Intensive Phase, in Week 12. The Supervisor will assess the
performance of the group, and either approve it to move on to the next phase or recommend more training.
Once the FOs Supervisor has visited and approved the VSLA to move on to the Development Phase, the FO will visit 3 times in this second
phase, at each loan meeting. The FOs role in the Development Phase is different. The FO should observe quietly in meetings unless the
Committee is making mistakes, or rules are being broken.
The FO should schedule a second visit by the FOs Supervisor in week 24, at the end of the Development Phase (circled in red). The
Supervisor will assess the performance of the group, and either approve it to move on to the Maturity Phase or recommend more training.
During the Maturity phase, the FO only visits twice. The Group is now running its normal meetings smoothly. The main purpose of the FOs
visits in the Maturity phase is to assist the VSLA to prepare for and conduct its first share-out (Training Module 7, circled in red).
The FO will attend the share-out, to observe and join the celebration. In Training Module 7, the FO will be train the Group on share-out
procedures as well as procedures to initiate the next cycle.
MIS information should also be gathered in each of the meetings circled in red. If possible the Supervisor should attend, increasing the
reliability of the data gathered, but all VSLAs should receive at least one visit from an FOs Supervisor to verify the VSLAs existence and the
reliability of MIS data. There is no need to gather data more frequently.
30
Module 7: Share-out/action-audit and graduation

Table 11:
Procedures for share-out at the end of the cycle
Meeting step
1. Share-out
Share-out procedures
The Social Fund is counted, the amount announced and put away. It does
not get shared out.
Loan repayment and fines money for the meeting are combined with the Loan
Fund
If any member still owes the Group money, that amount is recovered by
cancelling the number of shares in his/her passbook that equal the value of
the amount owing.
The Money Counters start counting the Loan Fund
While the Money Counters are counting, the Record-keeper takes the member
passbooks and counts the total number of shares of the Group
Once the Money Counters are finished, the Record-keeper uses the calculator
to divide the total of the Loan Fund by the total number of shares. This
determines the value of a single share. It should be written down to three
decimal places (for example, TShs 756.244).
Next, the Record-keeper multiples the number of shares in each passbook by
the value of one share. (S)he then announces the number of shares and the
amount, rounding down to the lowest unit of currency. (S)he then asks the
Money Counters to put that amount into the passbook, which is set aside.
The Record-keeper then cancels all of the members shares by drawing a large
cross on each page of the passbook on which there are share stamps
All passbooks are treated in the same way
before anyone receives any money. Once
the process is complete, there will be a small
amount of money remaining due to
rounding, but there should not be a shortfall.
If there is a shortfall, the process is repeated
until the amounts are correct. Any small
amount remaining is put in the Social Fund.
All members are given their passbooks with
all the money. It is very important that every
members money is placed in their hand.
2. Preparation Any member who wishes to leave the Group should be free to do so
for the next New members can now be allowed to join, if all remaining members agree
cycle
The continuing members now decide on the share price for the next cycle
If the group wishes to establish seed capital to initiate the next cycle, they
should now do so. All members may contribute whatever amount they wish,
and it can be more than 5 shares on this one occasion, denominated at the
new value.
The number of shares is recorded in the passbook of each member, in the
Starting number of shares this page box
The Money-counters count the seed capital and place it in the Loan Fund bag
in the cash-box
The Chairperson announces the amount and explains that this is the balance
of the Loan Fund to start the next cycle
The box is now locked and the old cycle is now formally ended
The FO then explains to the Group that in their next meeting, they must hold
elections and then revise their Constitution, which new members must sign.
(S)he then offers to attend the next meeting to assist with elections and the
Constitution.
31
Village Agents as trainers
5.1 Village Agents

Village Agents are a means to expand a programme cost-effectively and to create a
permanent, self-financing VSLA support capacity in local communities. VAs are VSLA
members with the skills and motivation to train new VSLAs for a fee paid by the group itself.
When VAs are used, the role of the FO changes. The FO starts out directly training VSLAs in
areas where VSL is unknown (these may be thought of as starter VSLAs). (S)he does this
because it is necessary to create demand for VSL training services and this can only be done
through the demonstration effect of successful VSLAs. At the same time, the FO will identify
people who may qualify to be trained as VAs from amongst the members of VSLAs. Once
this is done and new VAs are selected and trained, the FO reduces his/her training load and
spends most of his/her time as a VA Supervisor.
Starter VSLAs need to be relatively far apart, so that each VA will have the opportunity to
train 5-6 VSLAs at any one time and continue to increase the number of VSLAs for several
years thereafter.1 The size of the geographic area set aside for each VA will depend on
population density, and a VAs motivation to form distant groups will depend on their mode of
travel (foot, bicycle, public transport, etc).
In this approach, an FO forms the first 10-15 Groups over a relatively wide geographic area.
VAs are then selected, one per starter Group, as soon as the three month intensive training
phase is completed. The VAs, rather than the FO, then continues the mobilisation and
training of new groups in the area under the supervision of the FO. In this approach VAs are
provided with a bicycle.2
Using VAs as trainers is a proven approach but has taken different forms and there is a need
to adopt a common set of principles yet much remains to be learned. The clear advantage
of VAs, apart from potential implementation cost savings, is the opportunity to leave behind a
trusted mentor, who can assist VSLAs which struggle with democratic procedures, share-out
calculations and the occasional conflict. At least as important, the VA will be able to continue
to create new VSLAs, until local demand is satisfied without further programme investment.
5.2 Compensation mechanisms for Village Agents

VAs are not volunteers nor do they work for an incentive salary and take their orders from an
implementing organisation. From the start, VAs expect to be paid by VSLAs and know that
their relationship with an implementing organisation is built around the understanding that
over a year they will be helped to become independent, competent trainers of new VSLAs
and helped to develop market demand that they can exploit for their own benefit thereafter.
Thus, as soon as the VA model is implemented, each new VSLA will pay the VA a fee for
training and supervision services. This should be about $1-2 per training session, paid in a
manner that is appropriate for both the VA and the VSLA members. Implementing
Organisations are currently experimenting with various payment mechanisms for VAs and the
following are suggested options:
A fee of about $1-3 for each of the 15 scheduled training visits, paid in cash
3 to 5 shares for each of the scheduled training and supervision visits, provided the VA
attends and completes the training; this allows the VA to participate in the success of the
This has been a typical caseload for VSLAs up to this point.

Although the FO will work with 10-15 starter VSLAs, (s)he will only select a maximum of 8 people
to become VAs. If the number of VAs is greater than 8, the FO cannot provide proper supervision.
2
32
VSLA by receiving profit at the share-out3

Once a standard fee has been established, it becomes the norm for a given region and
eliminates the need for VAs to negotiate different terms for each training contract with each
VSLA.
5.3 The identification of Village Agents

VAs are identified by the Field Officer, in collaboration with the members of each group.
However the members must not vote for the VA. Experience shows that a democratic
decision may lead to a popular or influential individual, who lacks the appropriate skills, being
selected for the role. The VA must be identified by the FO on the basis of the following
criteria. The VA must:
stand out in meetings as a natural motivator, having learned the procedures of VSL
quickly and having a respect for disciplined meetings
have sufficient literacy and numeracy (demonstrated)
have the energy to train a large number of VSLAs and travel the necessary distances
is always punctual
is known to be honest
have expressed a strong, sincere desire to train VSLAs
The FO will not select an individual who does not meet these criteria, regardless of whether or
not they have the groups support. Conversely, the FO will never select someone who does
not enjoy the support of his or her VSLA. The groups role is more to confirm, rather than to
select the VA.
5.4 The training of Village Agents

Once selected, the VA will receive a formal training and will be provided with the companion
to this guide: Village Agent Training Guide. This guide contains all the tools needed for a VA
to carry out training and supervision of VSLAs, and incorporates the contract formats required
to formalise the relationship between VAs and VSLAs. The training of VAs has two
components:
3 days of classroom training in which the FO works through all of the training modules.
The VA will already be familiar with these, but the FO will focus on training tools and
techniques, and time management
At least 1 month accompanying the FO on his/her training visits to VSLAs to observe both
training and supervision
Once completed the VA will be required to schedule his/her time as per Annex 9.
5.5 Introduction of VAs to VSLAs

After VAs have been trained by the FO, they will be formally introduced to the VSLAs that
they will train. The FO will accompany the VA on each of these visits and will introduce the
VA to the VSLA as a competent facilitator who will train the VSLA over a 9-month period,
during which they will visit 15 times.
The FO will already have told the VSLA in the induction meeting about the fees that will be
charged. The FO will confirm that the VSLA is in agreement and will work through the VA
contract and agree on the preferred form of payment (cash or shares). The contract format is
attached in Annex 7. The involvement of the FO in this process is important, because it
This mechanism has yet been tested. The predictable downside to this approach is the
incentive for the VA to encourage a higher share price and higher loan service charge rates. However
the positive aspect of linking the VAs success to the VSLAs own success is worth testing.
33
prevents the VSLAs from exploiting VAs and attempts by the VAs to prolong their relationship
with the VSLA and charge fees much longer than necessary.
The FO will accompany the VA to meetings of different VSLAs at which the different modules
are taught. This means that the FO will attend a meeting at which Module 1 is taught by the
VA to one VSLA. (S)he will then accompany the VA to a meeting at which Module 2 is
taught, and so on. This does NOT mean that the FO accompanies the VA to all 7 training
modules of all VSLAs.
5.6 Village Agent Certification

If the VA is to be more than an unpaid FO, whose work ceases when a programme comes to
an end, it is important that there is independent verification of his/her capabilities. At the end
of one years supervision, a VA will be examined. This will consist partly of assessments by
the FO over the course of the year, but be validated by the FOs Supervisor, who will
accompany the VA to at least 2 different training and supervision meetings. The certification
process needs to be more than a rubber stamp. There should be a proportion of VAs who
may fail, or require re-training and an extension of their supervision period before receiving
the certificate. FOs should also be assessed during this process on the quality of the
candidate VA.
Once VAs are certified, the programme will consider them to be independent and able to
carry out VSL training at their own discretion; and charging fees that will be recognised as
standard in the area by this time.
5.7 The role of Village Agents in graduated VSLAs

Implementing Organisations are still learning about the use of VAs in support of graduated
VSLAs. So far, VAs have been used as trainers of new VSLAs. However there are several
potential roles for VAs which can be tested by Implementing Organisations:
Support for share-out and annual elections. This reinforces the need for an annual shareout, and helps ensure that VSLAs elect their management committee every year. VSLAs
should pay a fee for these services.
Support on an as-needed basis, for re-training and conflict resolution. These would also
be fee-based visits
VAs as commercial agents for financial institutions which offer services to VSLAs.
Examples might include:
Commissioned sales of insurance products
Fee-based services for facilitating access to regulated savings services (this fee would
likely be paid by the deposit-taking institution)
Fee-based services for facilitating access to supplemental credit (this fee would likely
be paid by the VSLA)
Paid services provided to donor funded programmes for implementation of complementary
programmes or data collection
The VSL methodology is designed not to require ongoing support after graduation. However
these services by a VA may add value and contribute to long-term sustainability where
conditions permit.
34
Annex 1:
Election procedures
The FO prepares the members for the election and explains the process (see Figure 4, below).
(S)he brings three bags to the Group meeting, each in a different colour, with a matching card
(red bag with red card, etc). (S)he also provides one small stone for each member.
Each of up to three candidates (for each position) is given a coloured card. The coloured bags
are placed behind a screen (or inside a building) some distance from the gathering and
sheltered from view of members and passers-by. Each member in turn goes behind the
screen (or into the building) and, hidden from the members but under the eye of the FO,
deposits a token in the bag of his/her choice.
When all of the members have voted, the FO counts out the votes in front of the members by
removing the stones from each bag. (S)he ensures that no additional stones have been put in
the bags the total should equal the number of members voting.
At the end of the elections, the FO explains that in the next cycle, a trusted member shall be
the observer, and agrees not to vote.
Figure 4: Diagram of election procedures
Building or natural object that hides the coloured

bags/tins from outside observers
Field Officer
Coloured
bags/tins
Building or natural object that hides the coloured

bags/tins from members
Member goes
inside
building/behind
screen to vote
Candidates: each holding

up a coloured card
Member
who has
voted
returns to
seat
Seated
members
35
Annex 2:
Constitution framework
Part 1: Group governance

I.
BASIC INFORMATION ON THE GROUP
Name of the Group _____________________________________________________
Address:
The Group was formed on: _______________________________________________
Date of official registration: _______________________________________________
II.
OBJECTIVE OF THE GROUP
The purpose of the Group is to be an independent, profitable provider of financial

services to its members
The services the Group provides to its members in order to achieve this objective are:
____________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
III.
RELATIONSHIP TO EXTERNAL SOURCES OF FINANCIAL SERVICES
The Group will not borrow from financial institutions during its first cycle of operations. If
it does so in future cycles, it will follow these rules:
The loan to the Group will not exceed the value of the previous cycles share-out amount
The Group will take the loan, not individual members.
The Group will on-lend the money to its members, and will not provide information about
this to the lender.
If the Group borrows from a financial institution, members agree that their individual
borrowing may never exceed 5 times their shares (without an outside loan from a
financial institution, the rule remains 3 times)
If a group borrows from a financial institution, member savings will not be used as a
security deposit
IV.
WHO MAY BE A MEMBER OF THE GROUP?
Lower age limit ________________________________________________________
Gender ______________________________________________________________
Residence ____________________________________________________________
Other common circumstances ____________________________________________
36
V.
COMPOSITION OF THE MANAGEMENT COMMITTEE
Chairperson
Record-keeper
Box-keeper
2 Money-counters
VI.
ELECTION PROCEDURES
Elections must be held at the beginning of each new cycle
The minimum number of people that must stand for each position is 2
A member can only be re-elected to the same position once
The minimum number of members who must be present to hold an election is: ______
The election procedure will use a system that allows everyones vote to be secret
A candidate for any position must be proposed by another member
VII. REMOVAL OF OFFICERS FROM THEIR POSITION BETWEEN ELECTIONS
Any member of the Association may, at any time, request a vote of no confidence against
a member of the Management Committee
The Committee member must resign if the majority of members decide to remove
him/her
An election is required to fill the vacant position
VIII. MEETINGS
To buy shares the Group will meet every week
Shares will be bought at every meeting but loan/repayment transactions will be

conducted only during loan meetings, held every 4 weeks. The Group will conduct a
share-out every year.
IX.
MEMBERS LEAVING THE GROUP
If a member leaves before the cycle is finished, the money they have used to purchase shares
will be returned to them, minus any loan and service charge they owe
X.
EXPULSION FROM THE GROUP
The reasons for which a person should be expelled from the Group are:
_________________________________________________________________________
_________________________________________________________________________
37
XI.
FINES
The following table lists the fines that will be charged.

Offence
Amount
Failure to attend a meeting

Late to a meeting
Not remembering Group rules
Loss of member number card
Forgetting key
Chatting through the proceedings
Showing disrespect to a fellow member
Not remembering decisions or balances from the preceding meeting
Failure of a member of the Management Committee to perform their duties
(other)
(other)
XII.
AMENDMENTS TO THE CONSTITUTION
2/3 of the members must agree before the constitution can be changed
Any member can propose an amendment to the Constitution
38
Part 2: Services offered by the Group

I.
SAVINGS
Members may buy 1 5 shares in each meeting
The purchase price of a share will be: _______________________________________
Members may contribute an equal agreed-upon amount at the start of every future cycle
to speed up the growth of the loan portfolio. At this moment only, the number of start-up
shares can be more than 5 shares per member, if all members agree
II.
LENDING
The maximum amount that anyone can borrow is three times the value of their savings
The maximum length of a loan term is 24 weeks, but only 12 weeks during the first cycle
A member must repay a loan before (s)he can take another
The monthly service charge to be charged every four weeks is: __________%
If a member dies and has a loan remaining unpaid, it will be treated as follows:
_____________________________________________________________________
_____________________________________________________________________
The highest priority for loans will be given for: ________________________________
The second highest priority for loans will be given for: __________________________
The third highest priority for loans will be given for: ____________________________
III.
SOCIAL FUND
The Social Fund is for grants only. No loans will be made from the Social Fund.
The member contribution to the Social Fund per meeting will be: _________________
The benefits for the death of a member will be: _______________________________
The benefits for the death of a spouse will be: ________________________________
The benefits for the death of a child will be: __________________________________
The benefits for the death of a parent will be:
Other: ________________________________________________________________
Other: ________________________________________________________________
Other: ________________________________________________________________
________________________________
39
Name: ____________________________ Signature: ____________________________

Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
Name: ____________________________ Signature: ____________________________
40
Annex 3:
The Kit
The kit consists of:
Strong, well-made lockable metal cash box, able

to be closed with 3 locks
Three good quality padlocks, each with two keys
25 Passbooks
25 Member number cards
Rubber stamp for marking shares
Ink pad and spare bottle of ink
Ruler
Two ball point pens: one black or blue, the other
red.
Good quality calculator
2 plastic bowls in different colours, at least 30 cm in diameter and at least 15 cm deep (one
for fines and one for money-counting)
2 fabric money-bags, with draw strings: one in one colour for the Social Fund, and one in
another colour for the Loan Fund
41
Annex 4:
Field Officers consolidated guide to meeting

procedures
This guide should be copied and laminated in plastic for reference in the field and routinely
used for Group meetings, after the completion of the training. In this table the role of the
Chairperson is highlighted and can also be used by the Chairperson in running a meeting.
Table 12: Consolidated guide to meeting procedures
Meeting step
1. Meeting
opening
Procedures
2. Social Fund
(if the group
does not have
a Social Fund,
skip to step 3)

contribute
The Record-keeper asks the Group to recall the balance of the Social
to the members
Fund
the next meeting
42

3. Sharepurchase/
savings

The Money-counters then remove the Loan Fund from its bag and count
it, announcing the amount to the members
are the same, the money is placed in the money-counting bo
is correct: the passbook remains with the Record-keeper for the rest of
the meeting
4. Expenses
bowl
43
5. Loan
repayment
The Chairperson asks borrowers to identify themselves by number
(if this is not a

loan meeting,
skip to step 6
and then to
step 8)
By referrring to the member passbooks, the Record-keeper confirms the

identity of the borrowers and the amount due from each borrower
Each borrower is then called to the front to give their payment to the
Money-counters. It must not be less than the service charge due.
The Money-counters count the payment, announce the amount and place
it in the Money-counting bowl
The Record-keeper enters the payment amount in the members passbook
in the Paid box
The Record-keeper then calculates the remaining balance due and enters
it in the Balance box in the borrowers passbook
The Record-keeper then calculates the service charge due in the next
meeting and fills in the Total owing box.
The borrower then signs in the space provided.
If the remaining balance due is zero, the Record-keeper signs the
passbook and announces that the loan is repaid, cancelling the loan with
a diagonal red line drawn through the page
6. Calculating
the new
Loan Fund
balance
When the loan repayment procedures are complete, the Chairperson then
tells the Money-counters to combine the money in the fines bowl and the
money-counting bowl and to count it
The Money-counters count the money in the Money-counting bowl and
the Record-keeper announces the amount to the Group
The Record-keeper then tells the Group that this is the money available
for lending in this meeting
7. Loan taking

maximum loan term (in weeks) and loan amount (three times the
members savings)
1/3 of the amount they want to borrow. If they have not saved enough
they must reduce the amount of their request
and announces it
The Record-keeper then enters the value of Loan taken (Loan balance)
and Service charge and enters the total in the Total owing box in the
members passbook
44

7. Loan taking
(cont.)

Loan Fund
8. Closing
balances
The Chairperson then receives the notebook from the Record-keeper and
announces the total amount in the Social Fund, innstructing all members
to memorise it for the next meeting
The Chairperson announces the total of the Loan Fund once again, and
instructs all members to memorise it for the next meeting
The Chairperson then asks the Key-holders to lock the box
9.
be of interest
Closing
45
Annex 5:
Use of passbooks
Savings
VSLA members save in the form of shares, which are stamped in the front section of the
passbook, as shown in Figure 5.
Figure 5: Passbook with 11 shares stamped in
Explanation: The illustration shows that

there have been five meetings and that the
member has bought eleven shares.
When members make their contribution,
the Secretary stamps in each passbook
the number of shares purchased and the
member confirms that the amount is
correct.
On each line, the unused spaces are
marked through with a diagonal line to
prevent fraudulent entry of shares at a
later date.
The value of shares purchased is 11 x
TShs 500 = TShs 5,500.
Figure 6: Passbook showing the sale of three shares
Explanation: Two meetings later, in the

seventh meeting of the cycle, the member
was unable to save. To show that she did
not save anything at this meeting,
the row for meeting 7 is cancelled by the
Secretary, with a diagonal line.
In addition, the member asked to sell three
shares, thus receiving TShs 1,500 (500 x 3
= TShs 1,500).
The three shares she bought in meetings 5
and 6 are deleted, using a red pen, and
the money is paid to the member.
The possibility of selling shares allows
members to access their savings, but all
members must understand that they will
lose future earnings when profits are
distributed. Once sold, the shares cannot
be replaced.
46

Figure 7: Situation at the end of 13 meetings
Explanation: Figure 7 shows what the

passbook looks like when a page is filled.
By the 13th meeting (the book contains
13 lines here, to cover a quarter of a
year), the member had purchased a total
of 28 shares. But, as we have seen, she
sold three shares purchased in meetings
5 and 6. At the 13th meeting, the net
number of shares bought during this
period is therefore 25.
This figure is added to the number of
shares at the beginning of the page and
entered into the cell "Ending number of
shares this page. On the next page, this
figure will be reported in the cell "Starting
number of shares this page.
Figure 7 demonstrates the total number
of shares owned by the member at the
end of the period.
The result is
cumulative and will be different at the end
of each page.
47
Loans
Loans are recorded in the back of the passbook. They are not shown in the form of stamps
but are written as numbers. Note: each loan occupies a full page.
Figure 8: Member loan record (1)
Explanation: The example on the left is

a members (Monicas) first loan, as
shown in the Loan No. column. She
borrows TShs 30,000. No date is shown
since loan meetings follow each other at
intervals of 4 weeks.
The service charge is TShs 3,000
because her Group charges 10% of the
loan amount every four weeks. In this
case, the loan period is 12 weeks,
indicated by the word End against the
Paid row, 12 weeks in the future.
Monica signs this to show that she
understands that she owes TShs 30,000
for the loan and TShs 3,000 as the
service charge for the first 4 weeks.
Explanation: At the next loan meeting,

four weeks later, she makes the service
charge payment of TShs 3,000 but no
repayment of the principal sum. The
next entry in her passbook appeared as
in Figure 9.
This shows that after paying the service
charge, the member still owes TShs
30,000 (TShs 30,000 Loan Amount plus
TShs 3,000 Service Charge minus
Amount Paid TShs 3,000). A service
charge of another TShs 3,000 is then
added to cover the next four weeks.
Thus, the member is told that she owes
TShs 33,000.
Note: The service charge is calculated
as the same amount at every loan
meeting, no matter how much has been
paid back.
This is to simplify the
calculations of balances owed. Use of
declining balance service charges is
recommended only where e-recording is
48
used.4 Written systems that use declining balance calculations are prone to error and take
much longer for Record-keepers to fully understand, especially when literacy levels are low.
Explanation: After another four weeks,

she made a loan repayment of TShs
10,000.
Because she owed TShs
33,000 (TShs 30,000 principal plus TShs
3,000 accrued service charge) this
means that she now has a balance of
TShs 23,000.
The Record-keeper receives the TShs
10,000 and writes a loan balance of
TShs 23,000 on the next line. She also
adds a service charge of TShs 3,000,
which will be owed at the next loan
meeting. Thus, the total amount owed is
TShs 26,000.
Explanation: Figure 11 on the left shows

that at the next meeting, the member
pays the full TShs 26,000 owing. The
Record-keeper (Helen) enters TShs
26,000 in the Paid row and signs the
entry.
Once the loan is fully paid, the Recordkeeper draws a red line through the
whole loan record. This indicates that the
loan has been completely repaid.
E-recording is an Android software for use with VSLAs that have access to smart-phones.
https://play.google.com/store/search?q=e-recording&c=apps
49
Annex 6:
Collecting data for the SAVIX management

information system
The internet-based management information system (The SAVIX MIS www.mis.thesavix.org)

is an important tool for your Supervisor to be able to know how well you are doing and for your
programme manager and donors to be able to understand how the project is progressing. You
will be regularly interviewed by your Supervisor (probably every month or two), and (s)he will
be able to show you how you are progressing against your workplan and which of your groups
are doing well and which may need some help to improve.
To be able to do this, you have to collect some information from all of the groups that you work
with. This needs to be done at the beginning of the cycle in the meeting in week 4 and at
every change of phase (or about every 3 months, during a loan meeting). You do not need to
collect this data more often than this.
Data collection is the responsibility of the FO. You do not ask the VAs to collect this
information for you, because experience has shown that data quality drops when it is done by
VAs, unless they are carefully selected for their numeracy skills - and the accuracy of their
data carefully monitored until they become independent.
Tables 15a and 15b are an example of a completed Data Collection Form.
Table 16 summarises the meaning of all terms on the Data Collection Form. It is very
important that you understand these terms because if you do not and you collect the wrong
data the MIS will produce misleading reports. The FOs Supervisor should be consulted, in
case the FO is unsure. If the Supervisor is unsure of definitions or data collection methods,
the programme should contact hugh@vsla.net for further clarity.
Table 15a: Field Officers Data Collection Form - Static data
This table shows the initial data for a newly formed group. This is only collected one time,
because it will not change.
The table on the following page shows the data that is regularly collected, every quarter (about
90 days)
50

Table 15b: Field Officers Data Collection Form Cycle data and main dataset
51
The two columns on the left show the data

required and the data itself, entered here as an
example. The two columns to the right are only
used by the FO to add up the total value of all
share purchases and to find out the total value
of loans outstanding by members of the VSLA.
It is intended to simplify the most difficult items
on the FO data collection form (items 15, 16
and 17)
The FO proceeds as follows:
Savings
Collect all of the members passbooks,
before they are put back in the box at the end of the meeting
Open each passbook at the current meeting and add up all of the shares stamped on this
page. Add this amount to the Number of shares at the start of the page. Enter the total
number of shares against the members number.
Add up the total number of shares and write it in the Total box
In the next box write the price of a single share (in this example, 500)
Multiply this amount with the figure in the Total box
Put the result in the box designated for Value of savings this cycle
Loans
From the member passbooks, identify all outstanding loans (with a balance remaining to be
paid) and the balance owed by each borrower. Enter this amount against the members
number. Do not include service charges due.
In the occasional case that a member has more than one loan due, add them together
Add up the total value of loans outstanding and write it in the Total box
The FO completes this form for each group at the beginning of the cycle and at each change of
phase, and submits it to his/her Supervisor.
52

Table 16 (1): Data definitions for static data (refer to Table 15a)
These are data that needs only to be entered once, when the group is created, usually during training. It records data that never changes
and need never be filled out again.
No
Name
Type
Description
Mandatory
Group
Name
Text
The group name to identify the group. Usually this is chosen by the group.
Yes
Group
formed by
Text
The name of the person who originally trained the group This is NOT the designation (such
as Field Officer or VA). This will be matched with a list of names that will have been preentered in the database, when you first set it up.
Yes
Date of
formation
Date
The date on which the group was first formed to become a savings group. We ask for this
because it will enable us to always know how long the group has been working as an SG.
So, for example, if a group already existed (i.e. a farmers group) you would not write the
time it was first trained as a farmers group but when it received its first training to be able to
start operating as a savings group
Yes
Latitude/
Longitude
Specific to
a standard
convention
Standard Latitude and Longitude format (Degrees, Minutes, Seconds) This is optional data
but must be generated by a GPS device and written in a standard formats:
No
The decimal degrees format (dd) is recommended because latitude and longitude are
expressed in simple decimal numbers (i.e. N 51.15208 E 007.5950) and most GPS devices
can be configured to use this.
If a different system is used, the SAVIX MIS software has an inbuilt converter to render the
result in the dd format.
These data will change only if the group changes its meeting place.
Number of
members at
formation
Numeric
The total number of members of the group at the start of the first cycle. This number will
NOT change in subsequent cycles
Yes
53

Table 16 (2): Data definitions for Cycle data (refer to Table 15b)
These are data that are verified at every visit to the group, but are unlikely to change after the first meeting of a cycle
No.
Name
Type
Description
Mandatory
Group name
Text
The group name to identify the group. Usually this is chosen by the group.
Yes
Cycle number
Numeric
This is the cycle number of the group. A cycle is a period in which a group saves, gives loans to
its members and finally shares out its assets.
Yes
Date savings
started this cycle
Date
The date when the people started saving money during this cycle. It does not refer to the date
that the group first started saving, if the group is now in a subsequent cycle. This field will be
empty when a new cycle starts but after being filled in it will not be changed
Yes
Group Status
Text
Choice: Supervised or Self-managed. A group may still be receiving training and supervision
as a savings group, in which case it is defined as Supervised, or it may be operating
independently and no longer being trained or supervised, in which case it will be defined as Selfmanaged. If a programme is carrying out other activities with the Savings Group that are not
related to savings and credit, this is not relevant. The status as being Supervised/Self-managed
only refers to the savings and credit activities of the group
Yes
Group monitored
by
Text
The name of the person who is monitoring the group. If data is being collected from the groups,
then this is the name of the person doing this on a regular basis. It may not be the person who
trained the group.
Yes
Registered
members when
savings started
this cycle
Numeric
The number of group members at the start of the current cycle. This will be the same as the
number of registered members filled out on the Group Static Fields sheet for the first cycle, but
may change in subsequent cycles.
Yes
Savings reinvested at start

of cycle
Currency
The total amount of cash in the loan fund that was carried over from the previous cycle. This
can be either in the form of cash or may also include loan fund money deposited to a financial
institution.
Yes; default
0
Property at start
of cycle
Currency
The value of the physical property owned by the group at the start of the cycle, not including any
Seed capital. The value of this property is listen only as the purchase price paid. No
depreciation or appreciation is estimated.
Yes
54

Table 16 (3): Data definitions for main Dataset (also refer to Table 15b)
These are data that are collected at every meeting and are very likely to change
No.
Name
Type
Description
Mandatory
Information
9
Date of data
collection
Date
The exact date this data was collected in the field.
Yes
10
No. of registered
members now
Numeric
The number of people at the time of data collection who are considered by the group to be
members. They may not be present at the meeting for various reasons (i.e. illness) but are
counted as members.
Yes
11
No. of registered
women now
Numeric
The number of women at the time of data collection who are considered by the group to be
members.
Yes
12
No. of members
attending this
meeting
Numeric
The number of group members attending the meeting at the time of data collection. This
information is usually gathered towards the end of the meeting when all latecomers have
arrived.
Yes
13
Dropouts this cycle
Numeric
The amount of dropouts in this cycle until this now. A dropout is a member who has left
the group for any reason (voluntarily leaving for no specific reason, removal by the other
members for reasons they deem sufficient, death, moving away to live elsewhere etc.)
Yes, default 0
Loans and savings

14
Value of Savings
this cycle
(including seed
capital)
Currency
Total value of all savings to date this cycle. This sum includes seed capital (which is
assumed to be member savings)
Yes, default 0
15
Value of loans
outstanding
Currency
Total value of all outstanding loans at the moment of data collection. It does not matter if
the loan is being paid on time or is late: the amount that is listed is the total value of all
remaining principal to be repaid. It does not include interest.
Yes, default 0
16
No. of loans
outstanding
Numeric
Number of loans outstanding at the time of data collection.
Yes, default 0
17
Write offs this cycle
Currency
The amount of any loans lost or forgiven during this cycle. This is a cumulative figure
Yes, default 0
18
Loan fund cash in

box
Currency
The amount of Cash in the Box which is available to members for loans.
Yes, default 0
55
No.
Name
Type
Description
Mandatory
Other assets and liabilities

19
Bank balance
Currency
The total balance of all funds the group has deposited to any type of financial institution.
Yes, default 0
20
Social fund
balance
Currency
The total amount of cash held by the group in any other funds separate from the loan fund.
In most cases this refers only to the Social Fund, but some groups have additional funds,
such as Education funds or Loan insurance funds etc.
Yes, default 0
21
Property now
Currency
The total value of all of the property owned by the group at the time of data collection. It
refers to all types of physical property owned by the group. The value of this property is the
purchase price paid. No attempt should be made either to depreciate or re-value physical
assets.
Yes, default 0
22
External debts
Currency
The total value of the debts a group owes to external organizations (banks, coops,
SAACOs) or individuals
Yes, default 0
Dividends and share-out

23
Dividends paid
this cycle
Currency
Some groups make a partial share-out during a cycle (usually for buying inputs to
agriculture, or for important ceremonies: SHGs fall into this category). Dividends paid this
cycle refers to the total money that was paid out to members, before the main share-out. It
is a cumulative figure.
Yes, default 0
24
End of cycle
share-out
meeting
Yes/No
This field, displayed as a checkbox, is intended to indicate if the meeting at which the data
was collected was a share-out meeting at the end of the cycle. The system has a default of
No and this must be changed to Yes if it is a share-out meeting
Default No
56
Annex 7:
Agreement between a VSLA and a VA
This agreement is between __________________________________ (Village Agent name)

and __________________________________________________________ (Group name)
The Village Agent agrees to:
Provide high quality training on VSL, making 15 visits over 36 weeks (or longer if needed)
Be on time at the agreed meeting time and place
Never touch the Groups money, write in its records, or take the box away
Never ask to take a personal loan
Never ask for a gift from the Group
The VSLA agrees to:
Ensure every member comes on time and attends every meeting
Follow the rules and procedures taught to them
Pay the Village Agent at each of the 15 training visits the sum of ___________________
Payment will be made in the form selected by the VA below (check relevant box):
In cash for each training visit

In the equivalent value in shares for each training visit
Note: The VA cannot ask for a

loan. The passbook is only intended to show what the VA is owed at the share-out
The meetings will be held at (place): ____________________________________________

The meeting time will be: _____________________________________________________
The Village Agent telephone number is: _________________________________________
VSLA Chairman (or other) telephone number is:
__________________________________
VA signature and date ________________________________________________________
Chairman signature and date __________________________________________________
Witness signature and date ____________________________________________________
57
Annex 8:
Field Officer time management
58

VSLA Field Training

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Field Officer Training Guide

Village Savings and Loan Associations

Field Officer Training Guide

What are VSLAs? ........................................................................................ 6

Schedule of operations ................................................................................ 8

Training modules 1 - 7 ................................................................................14

Village Agents as trainers ....................................................................................32

Election procedures ....................................................................................35

Field Officer Training Guide

Whats new: Sharia compliance

Field Officer Training Guide

Field Officer Training Guide

Introduction for the Field Officer

Field Officer Training Guide

What are VSLAs?

Field Officer Training Guide

Field Officer Training Guide

Figure 1: VSLA training and supervision schedule

Field Officer Training Guide

The Preparatory Phase has three purposes:

Supervisor and FO orient local

FO introduces VSL to the

First meeting of FO with newly formed groups

How the methodology works.

This may take more than one

Open meeting. Anyone can

Step-by-step description of how VSL works

Attended only by people who are committed

Field Officer Training Guide

Orientation of local leaders and government

What is covered in this meeting?

Field Officer Training Guide

Introduction of VSL methodology to the

Field Officer Training Guide

First meeting with potential VSLAs

Field Officer Training Guide

The FO explains that there are 7 training modules:

Members, Leadership and Elections

Know each other and be from a similar economic background

Field Officer Training Guide

Table 2: Diagram of training schedule

Policies and rules

Field Officer Training Guide

Module 1: Groups, leadership and elections

Know each other and be from a similar economic background

The group chooses a name for the VSLA

Table 3: Qualities and responsibilities of the Group Chairperson

Field Officer Training Guide

Table 5: Qualities and responsibilities of the Group Box-keeper

Lives in a house with good security

Brings the box to the meetings on time

Stands in for the Record-keeper when the

Table 6: Qualities and responsibilities of the Group Money-counters

Field Officer Training Guide

Module 2: Social Fund, share-purchase and credit policies

It allows all members to see clearly what is happening

The FO starts the meeting by seating the

Field Officer Training Guide

keeps the other three meetings short