Your progress
0%
Here are some of the key ideas you will need to understand in order to effectively support people with disabilities in accessing financial services that they need.
Use your mouse or keyboard to expand each of the headings below.
There are five main types of financial services:
Savings Saving is a practice based on a value system of self-reliance. It creates financial capital, increases feelings of individual self-worth and group solidarity and establishes credit worthiness for access to financial services
Credit Credit is a loan that commonly needs to be repaid with interest within a specified period of time. Credit can be provided by commercial banks, microfinance institutions, credit and savings cooperatives and self-help groups.
Grants Grants may be in cash or in kind, such as tools and equipment, animals or agricultural implements. They are often available from government programmes, NGOs , local associations or schemes set up to support vulnerable groups.
Insurance There are different types of insurance, such as health insurance, life insurance or crop insurance.
Money transfer services For those who cannot work, or who depend on support from others outside their immediate community, access to an efficient and easy-to-use money transfer system can be important.
In some countries, an informal system not linked to banks may be used. Access to money transfer systems may be needed to start a business.
Learn how CBR in Laos helps support income-generating activities among people with disabilities through a system of Village Savings Funds.
People with disabilities commonly face difficulties accessing financial services to support income-generating activities. In response to this, a CBR project in remote districts of Savannakhet Province, Laos, provides support to establish Village Saving Funds as an option for people with disabilities to join with the rest of their community to overcome the problem.
In Phoxai village in Sepon District, Laos, a Village Financial Committee was formed, comprising both disabled and non-disabled people. Training for the village on saving, management and accounting was provided by the CBR project team. Fund membership is inclusive and open to all residents of the village to ensure that people with disabilities are part of the mainstream decision-making process in their communities. Each member of the Fund deposits an amount each month, out of which revolving loans are provided. People with disabilities are prioritiszed to receive loans to undertake income-generating activities.
Financial service providers can be broadly divided into three groups:
Insurance companies provide insurance, money transfer companies (offer money transfer services, regulated commercial banks normally offer all types of financial services, postal banks often only offer savings accounts
In this system, a group of people pay small amounts into a common “pot” every week or month on a voluntary basis. A lump sum is then distributed as a loan or grant to one member at a time. This system and group is also known as a Rotating Savings and Credit Association (ROSCA).
