Indian community-based housing finance systems: potentials and pitfalls for urban development and housing improvement

Figures & data

Table 1. Financial transactions in a lottery ROSCA.

Months	1	2	3	4	5	6	7	8	9	10	11	12	Total
Contribution	100	100	100	100	100	100	100	100	100	100	100	100	1200
Funds received	1200	1200	1200	1200	1200	1200	1200	1200	1200	1200	1200	1200	–

Source: own research.

Table 2. Financial transactions in an auction ROSCA.

Months	1	2	3	4	5	6	7	8	9	10	11	12	Total
Contributions	100	100	100	100	100	100	100	100	100	100	100	100	1200
Collected in fund	1200	1200	1200	1200	1200	1200	1200	1200	1200	1200	1200	1200	–
Auction amount	600	600	500	400	400	300	400	300	200	200	100	0	–
Fund re­ceived by winner	600	600	700	800	800	900	800	900	1000	1000	1100	1200	–
Dividend received by each person	50	50	42	33	33	25	33	25	17	17	8	0	333

Source: own research.

Table 3. Overview of the main characteristics community-based housing-finance systems.

	ROSCA	SAVA	ASCA
Allocation mechanism of finance	Rotating	Accumulating savings	Accumulating
Number of participants	Small	Small – large	Small – large
Cycle	Short	Short – long-term	Short
Orientation	Financially and social oriented	Financially, to lesser extent socially	Financially, to lesser extent socially
Control mechanism	Mainly face-to-face in combination with rules and regulations	Mainly rules and regulations	Face-to-face in combination with rules and regulations
Management system	Manly democratic	Mainly authoritarian	Mainly authoritarian

Table 4. Financial overview of a low-cost sanitation scheme.

Month	Number of participants	Beneficiary contribution	Total contributions	Cost latrines	Collections minus costs**
1	200	50	10,000	2,400	7,600
2	198	50	9,900	2,400	7,500
3	196	50	9,800	2,400	7,400
4	194	50	9,700	2,400	7,300
5	192	50	9,600	2,400	7,200
6	190	50	9,500	2,400	7,100
7	188	50	9,400	2,400	7,000
8	186	50	9,300	2,400	6,900
9	184	50	9,200	2,400	6,800
10	182	50	9,100	2,400	6,700
11	180	50	9,000	2,400	6,600
12	178	50	7,700*	213,600	−205,900
	Total		112,200	240,000	−127,800

*This amount is the collected contributions minus the payment of Rs. 600 to the two winners each in the last month of the cycle.

**Note that the organizer obtains relatively cheap working capital in an incremental way.

Source: Smets (1998, p. 64).

Smets, P. (1998). Marketing as an alternative for toilet schemes with a credit component in Andhra Pradesh. Nagarlok, 30(3), 52–66.

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