How CMSA works for groups of individual savers:
a) Select the FSP that you would like to save with from the list of available FSPs registered on this website.
b) Register your group of between 5 and 50 members under the selected FSP.
c) During the registration process, you will be guided to select the parameters that will determine how your group will operate e.g. amount of weekly savings, weekly savings anniversary, tenure of your group etc. You will also be required to identify one group member as the chairperson of the group. The chairperson will be responsible for group cohesion and will be the last person to receive a loan. In return for this service, this chairperson will receive benefits such as a preferential interest rate.
d) After you complete the registration process, all your information will be sent to your selected FSP. Your FSP will verify the information and then use it to open your accounts in their instance of CMSA. Once the FSP creates your accounts in their CMSA instance, each member of your group will receive a welcome message inviting them to start saving with the selected FSP. After several weeks of savings, loan offers will start to be extended to your group members based on the parameters that you selected during the registration process.
e) In case any member of your group defaults on either weekly savings remittance or loan repayments, all the group members will be notified. If the defaulting member does not make good the due payment within a specified period, your group will be automatically shut down and any savings returned to the individual group members less the value of any outstanding loan balances that are due to the FSP. This means that the loans disbursed by the FSP will be secured by the group security savings balances so that the group members are effectively cross guaranteeing each other's loans.
f) If your group operates in line with FSPs terms of service and meets all its obligations, at the end of your group's tenure, each member of the group will receive back their full savings with interest.