I am in a savings pool. Like a #CreditUnion, it allows us to make our savings available to each other as loans. But we don't charge interest on the loans, instead members accumulate savings as they pay off their loans, which become available to them when the loan is paid off. Also, we make decisions about loans by consensus, instead of having a loan officer making final decisions. But we depend on volunteer administrators and we need some #FreeCode banking software to manage the accounting.


@strypey How do you handle the situation when somebody fails to repay the loan?

@chebra so far it's never happened. I guess in theory everyone could take a hit. But we usually ask for an asset to secure the loan. Also, each pool is a small, member-run organization and new members are recommended and trusted by an existing member. So we're lending to people we know, not random strangers. The consensus process for each loan application includes a lot of discussion about exactly how the loan will be paid, whether we can help reduce the person's cash costs as a group etc

@chebra I'll let you know if it happens ;) After more than a decade of Savings Pools in #Aotearoa, some of which have helped pay off mortgages, we've never heard of any Pool not getting paid back. I think the secret is having relatively small pools, in which the members know and trust each other. Supplemented by legal agreements (a la P2P lending) which can cover both internal loans and interloans between pools.

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