Microfinance and health services: Experience and views of women in the VICOBA grassroots bank system

Abstract

Introduction: Village Community Banks (VICOBA) is a grassroots group-based microfinance model designed to support viable income-generating  activities for the poor, especially women excluded from the formal sector. Integration of microcredit programs with health services is reported to have  improved health and social outcomes in other contexts. This study aims to understand the experiences of women involved in VICOBA programs in the  Moshi District of Tanzania and to explore their views regarding the potential for integration of VICOBA with health services, including health education.

Methods: We conducted detailed interviews with 16 women involved in VICOBA to explore their views on the VICOBA model, including potential for  integration with health services.

Results: Women reported increased savings and more support for their children’s education as a result of their involvement in the VICOBA program. With  increased income, these women and their family members had better access to health care and improved housing and sanitation. In addition, the  women felt empowered due to greater decision-making power and increased networking opportunities, including the sharing of information related to  business practices and social welfare. They agreed the VICOBA program provides a unique opportunity to integrate microcredit with health education  programs, which can lead to behavioral changes in health practices, promote uptake of preventive interventions and facilitate timely access to curative services among clients.

Conclusion: VICOBA improves the welfare of its clients and has the potential to be used as a platform for providing health-related services to members  from hard-to-reach communities.