Written by Shazia Siddiqui | November 26, 2022

 

So what are money circles anyways?

So what are money circles anyways? Do you remember your grandmother, mother or aunt stashing away loads of cash in her drawer?

 

Centuries-old concepts are making a comeback in the 21st century. A money circle typically involves a group of people that regularly contribute a set amount of money to the group manager, or in other words the circle pot. The contribution schedules can range anywhere from week-week, monthly or bi-monthly. All users in the group collectively determine the schedule and what they are comfortable with contributing before the circle officially begins.

 

 

How does it work?

Let’s say there are four people in a money circle. The total payout is $1,500 with a contribution schedule of four months. Each month, each person in the circle contributes $500 to the pot, totalling $1,500. In the first month, the $1,500 is handed over to one member in the circle. Each month, a different circle member is given the pot of money, until every circle member has had a chance.

 

Known as ‘kametis’ in Pakistan, ‘chit funds’ in India, ‘ekub’ in Ethiopia and ‘susus’ in Southern Africa, money circles have existed for centuries in almost every non-western culture in the world. Golak is dragging these offline ancient circles to the 21st century, by digitizing this process. Sign up for our waitlist to hear more about us when we launch!