Rotating savings and credit association
Form of peer-to-peer banking / From Wikipedia, the free encyclopedia
"ROSCA" redirects here. For the U.S. law that limits companies' ability to force consumers to receive recurring charges without their permission, see Restore Online Shoppers' Confidence Act.
A rotating savings and credit association (ROSCA) is a group of individuals who agree to meet for a defined period in order to save and borrow together, a form of combined peer-to-peer banking and peer-to-peer lending. Members all chip in regularly and take turns withdrawing accumulated sums.
Economist F. J. A. Bouman described ROSCAs as "the poor man's bank, where money is not idle for long but changes hands rapidly, satisfying both consumption and production needs."[1]