ISUSU is an independent African investment scheme that thrives on saving, investment with compound interest and lending without collateral among rural dwellers. It’s base is totally on thrift collection. As the name goes, no definition is available for its meaning, yet it serves as the financial backbone where normal banking is not available or undesirable. It could be operated by any group of persons.
It has no government regulations guiding its operation rather it thrives on the discretion of the partners, age groups, families or co-operative societies that institutes it. It is a form of banking services yet most of the players are not book literate but accounting gurus. Among the Africans it remains a borrower of last resort and a business venture that is highly protected by unwritten norms and customs.
The investment scheme which thrives more in the rural areas accounts for the funding of economic activities at the grassroots. With the members regularised periodic contributions, a large pool of funds are made available. These funds are further distributed to those who booked for lending. It could be members or outsiders. However, each intending borrower must be backed by a financial member. In extreme cases, collaterals are demanded but such cases do not regularly arise as everyone lives in the same environment.
Members of these ISUSU group are encouraged to save and invest simultaneously. This savings and investment earns as much as 5-10% return on investment each month. Here are other benefits of the business-
- you can choose your personal rate of investment and the periodic intervals best suitable for you. This ranges from 4days interval, weekly, bi-weekly and monthly.
- It offers a high interest return where your capital is equally secure.
- The entry and exit demands are less stringent and open.
- It is a standard store of wealth, offers regular cash flow, protects against inflation and highly liquid.
- The investment is built on compound interest rate of returns. The higher your periodic saving, the higher your accruable interest on compounding rate.
- It serves as an emergency fund for both members and outside borrowers.
Interestingly, this business is not taxed by the government.