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Traditional forms of rotating savings groups. The group is usually comprised of relatives or friends. The group agrees on a specific amount for each member to contribute and a specific day for the contribution as well as the total number of participants in the scheme. On the agreed date, the members meet and pool the money together and one of them takes the total amount. The chosen member can be selected by lottery or the group can decide to allocate it to someone specific because of urgent matters affecting that person. No member can be selected twice in the same cycle.
(source: http://www.mftransparency.org/microfinance-in-west-africa-grows-up/)

Synonyms:
merry-go-round , chit fund
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