> ## Documentation Index > Fetch the complete documentation index at: https://help.agatabo.com/llms.txt > Use this file to discover all available pages before exploring further. # What is a Tontine? > Understanding rotating savings and credit associations ## 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**: 1. Members meet regularly (weekly, monthly) 2. Each member contributes fixed amount 3. Pool is distributed to members (rotating order, or loaned) 4. Cycle repeats **Example**: 10 members contribute 10,000 RWF monthly * 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 **Lending tontine**: Pool loaned to members with interest * Members compete for loans * Interest income benefits all * What Agatabo is designed for **Hybrid**: Combination of rotating and lending ## 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? Begin using Agatabo Understand permissions