At OHED, Village Savings and Loan Associations (VLSA) or Building Societies Programs carry out the same basic functions in collecting savings from the organization and using these savings by lending the money to individuals by way of mortgage loans in housing.
OHED members and other community groups who are economically weak create a safe place to put their money and increase revenues. However, some OHED saving methods do not require storing at all, since the money is immediately redistributed after collection.
The initiated group can also buy or make a cash box that will be safeguarded by several members for verification, proof and confirmation.
OHED members meet regularly at their offices to monitor and evaluate the VLSA programs, their implementation phases and benefits to vulnerable communities.
Saving money helps navigate tricky situations, meet financial obligations, and build wealth. Therefore, at OHED, saving money is vital. It provides financial security and freedom and secures members and all other community groups in a financial emergency. By saving money, OHED members can reduce poverty and avoid debt, hunger, illiteracy, benefit conflicts and diseases which relieve stress in households.
The VSLA at OHED is presided over by internal regulations drawn up by its members and runs for a cycle of between 9 and 12 months. At each weekly meeting, the members pay in their contribution to the social fund and buy shares (savings). Starting from the 3rd or 4th month, the VSLA allows the members who request it to take out a loan with interest for up to three times of their individual total savings.
At the end of each cycle, all the loans are paid off, and any savings and profits are shared between the members in proportion to the number of shares held.