Definition
A tontine (also called ROSCA - Rotating Savings and Credit Association) is a group financial arrangement where members regularly contribute money to a common pool, which is then distributed to members according to agreed rules.How Tontines Work
Basic model:- Members meet regularly (weekly, monthly)
- Each member contributes fixed amount
- Pool is distributed to members (rotating order, or loaned)
- Cycle repeats
- Total pool: 100,000 RWF per month
- Month 1: Member A receives 100,000 RWF
- Month 2: Member B receives 100,000 RWF
- Continues until all members received once
Types of Tontines
Rotating tontine: Each member gets full pool once- Simple, predictable
- No interest charged
- Good for forced savings
- Members compete for loans
- Interest income benefits all
- What Agatabo is designed for
Why Join a Tontine?
Benefits:- Access to capital (loans)
- Forced savings discipline
- Community support
- Lower costs than banks
- Flexible terms
- Member-owned
Tontine vs Bank
| Feature | Tontine | Bank |
|---|---|---|
| Ownership | Members | Shareholders |
| Interest rates | Member-set | Market rates |
| Loan approval | Committee/members | Credit score |
| Collateral | Flexible | Strict requirements |
| Community | Strong bonds | Transactional |
Agatabo’s Role
Agatabo helps tontines:- Track member savings
- Manage loans
- Calculate interest
- Generate reports
- Maintain transparency
- Scale operations
Need Help?
Getting Started
Begin using Agatabo
Member Roles
Understand permissions