Community-Driven Financial Inclusion for the Most Vulnerable Households: Lessons from the Tat Lan Programme’s Village Savings and Loan Associations in Rakhine, Myanmar

This report highlights lessons from the Tat Lan Programme’s Village Savings and Loan Associations (VSLA) in Rakhine, Myanmar. The Tat Lan Programme, funded by the Livelihoods and Food Security Trust Fund (LIFT) in Myanmar was implemented in two phases (2013-15 and 2017-18). The overall goal was to ensure a sustainable increase of food security and incomes of participant households in 259 communities in the townships of Myebon, Pauktaw, Kyaukpyu and Minbya in Rakine State. Findings on the effectiveness of VSLA’s include;

1. VSLA’s have become key source of credit in the communities, reducing debt and increasing household and community agency over their own finances
2. VSLA’s had significant positive impact on financial behaviours
3. There is evidence that VSLA’s are making positive contributions to household income, food security, resilience and child wellbeing
4. Households predominantly used savings and loans from VSLA’s to invest in livelihoods and their children’s education
5. VSLA’s have contributed to certain aspects of women’s economic empowerment
6. VSLA model offers better value for money, lower risk, and greater responsiveness to the needs of the poorest households than available alternative savings and credit options