A  Savings 4 Transformation (S4T is a group of 10 - 25 people who save together and take small loans from those savings.  An S4T activities  run in ‘cycles’ of about one year, after which the accumulated savings and profits are shared out among the members according to the amount they have saved. 

S4Ts are member-managed.  Programme staff (FO’s) and Village Agents (VA’s) will train members, but never manage the S4T, write in the passbooks nor touch money belonging to the members.

S4Ts are trained by Field Officers (salaried programme staff) or Village Agents (who receive fees from the S4Ts for the training).  Village Agents are members of S4Ts who are identified as having the skills to train other S4Ts.  A VAs role will be to:

• Train new S4Ts.
• Assist S4Ts they have trained each time they would like assistance between cycles (share-outs, membership changes, renovating the constitution, elections)
• provide refresher training
• assist in resolving conflicts.

The first cycle of S4T is a training and supervision cycle lasting at least 36 weeks.  During the first cycle, the Groups will meet weekly.  This may change, as the group sees fit, thereafter.

Members save through the purchase of between 1 – 5 shares every meeting.  The share-value is decided by the S4T at the start of each cycle.  At each meeting all members have the right to buy between 1-5 shares.  The share value cannot change during the cycle.

Members can choose to have a Social Fund, to use for small grants when members are in distress.  This is mandatory in the first cycle, but optional in future cycles.

The Loan Fund is comprised of money contributed in the form of shares and loan profits (from service charges).

All members have the right to borrow up to a maximum of 3 times the value of their shares

The monthly service charge for loans is determined by the members at the beginning of the cycle, in the form of a percentage value.  It cannot be changed during the cycle.

Loans are taken and repaid once every 4 weeks.  All loans should be repaid within a maximum of 12 weeks during the first cycle.  The borrower is free to pay in whatever amounts he/she wishes at each loan repayment meeting, but must repay the total sum owing within the agreed-upon period

All S4T transactions are performed at meetings in front of all the members.  To ensure that transactions do not take place outside S4T meetings, cash and passbooks are locked in a cash-box secured with three padlocks.  The three keys are held by three members, none of whom is a member of the Management Committee.