FINANCIAL SUSTAINABILITY OF SAVING AND CREDIT GROUPS IN THE PROVINCE OF SANTA ELENA, ECUADOR

Abstract

The communities of the province of Santa Elena are vulnerable groups without financial guarantees that prevent access to loans in conventional banks. Since September 2014, the Investment and Cooperation Foundation through the “Save to learn” program has strengthened the creation of the groups through financial advice. Groups grant loans among community members, generate their own interests and create savings culture. The objective of this article focuses on the identification and evolution of savings and credit groups in the province during the 2014-2018 period. The descriptive and bibliographic analysis technique was used in order to segment the sample by location, age, and social capital and profile specific characteristics. 233 savings and credit groups constituted with an average of 25 members, 21614 borrowers, 5210 active clients, 174 million dollars in loans, 140 groups located in the north zone and 93 in the south zone were identified. The savings program encourages the economic inclusion of communities and long-term financial self-sustainability in the province.

Keywords: Saving, Community, Microcredit.

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