Internal Savings and Lending (ISALs) is a saving methodology that is being promoted by MeDRA in its operational areas with the target communities.
The ISALs methodology entails community members self-selecting themselves and forming groups of averagely 10 members. When the group is formed, MeDRA capacitated the group members with knowledge on how the money is managed and borrowed as well as income generating activities they can engage in. The members start saving amounts they can afford. Any money contributed or saved by the group member should be borrowed by the members of that group and the repayment of the loan with interest should be done within a stipulated time frame. The methodology calls for the savings to continue and members to continuously borrow from the savings and interest earned.
The ISALs run in a cycle and when the cycle ends, members share the savings with the inclusion of interests earned on loans, hence wealth is created within the group and shared by the members. The money shared is used for household needs like food provision, school fees payment and purchase of household property. Through the scheme, women in communities have been empowered as they are able to buy their own household property.