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Significance of Savings in Microfinance in Afghanistan

Significance of Savings in Microfinance in Afghanistan

This MISFA report looks at clients' savings behavior: when and how they save, and for what purposes they used their savings (purchase of assets, use for household events or needs, use as collateral/leveral for accessing loans). It attempts to assess the demand for savings service products to allow clients to deposit and withdraw for business or consumption purposes. Finally, it looks at the following three issues:

1. MFIs members/clients have the capacity to save as per the guidelines stated in the methodology;
2. Members'/clients' savings are significant insofar as they supply a valuable fund source to reach out loan products to larger market segment;
3. Members/clients require savings product to secure their money with reliable service providers, and are able to use the savings to fulfill their need.