Lending circles: how they work

A lending circle, or rotating savings group, is a group that pays the same amount into a shared pot each month, and one member receives the whole pot each round. They've been used around the world for generations.

Benefits

• A lump sum without borrowing from a lender
• Built-in saving discipline
• Some nonprofit-run circles report payments to credit bureaus

Risks

• If someone stops paying after receiving the pot, others lose money
• Informal circles have no legal protection
• Only join with people you trust, or through an established nonprofit program

See an example

Our lending circles page shows a full payout schedule.

General educational information, not legal or insurance advice. Save More Circle isn't paid by any lender, app or store.