Sun, Oct 18 Live
San José 24.1° Drizzle USD/INR ₹95.08 GOLD ₹397,521 NIFTY 50 23,146.15 +0.65% NIFTY BANK 55,844.00 +0.06% INDIA VIX 14.03 +0.00%
Business & Economy

Mizoram’s pua chawh: the village loan system that never needed a bank

Mizoram's traditional rotating savings circles are funding the state's newest businesses.

Lalhmingthanga 1 min read

The pua chawh — a rotating savings circle in which members contribute monthly and take turns drawing the pot — has funded Mizo life for generations: weddings, houses, funerals.

Now it is funding startups. A survey of Aizawl’s new businesses found a third had been seeded by pua chawh pots rather than banks.

The circles run on trust and community, and their interest rate is measured in obligation.

Leave a Reply

Your email address will not be published. Required fields are marked *