The role of informal microfinance institutions in saving

• The Raiffesein model
Raiffesein is a German who developed a type of organization that operated primarily in
the rural world. He wanted to make credit accessible to farmers based on Christian
morals.
The participation of the rich would enable them to help the poorest; however, the
control of the organizations remained in the hands of the best off. One of his principles
was: Loans are granted to members only and funded by their savings.
• The Schulze-Delitzsch model
Was also a German who developed organizations for craftsmen, small merchants and
independent employers?. He used the principle of subscriptions (The banks offered
remunerations on capital). His principle was that “the members are bound to
participate in the administration and management and make decisions as a whole in the
last instance”.
• The Luzzati model
The Luzzati model developed the first “people’s banks” around 1860s located in the
cities offering services to the rural environment. The model stressed the moral side of
cooperative action, evaluating the borrowers’ morals. A Reserve fund funded by
annual profits and low-cost and transferable equity shares are some of the Luzzati’s
principles.
• The Desjardins model.
In Quebec, in the early 20 th century, Alphonso Desjardins developed his project of
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