Critical review of current literature and research agenda on the sustainability of savings groups in developing countries

Purpose Facilitated savings groups (SGs) are self-managed groups whose members pool their savings and lend money to each other. Over the past three decades, they have become one of the most widespread financial inclusion models in rural areas, primarily through NGOs facilitation. Yet, early scholars such as Bouman (1995) and Schreiner (2000) warn that external intervention may threaten their long-term sustainability. This study aims to investigate the factors that make facilitated SGs sustainable. Design/methodology/approach The study reviews the existing literature on facilitated SGs, examining the mechanisms through which NGO facilitation shapes sustainability. Findings The review identifies three interrelated dimensions of facilitated SGs sustainability – institutional, financial and social – and highlights the trade-offs they often face, such as inclusion versus financial performance and autonomy versus external support. These insights form the basis for a conceptual framework and point to priority areas for future research. Practical implications The results underscore the need for balanced facilitation strategies that strengthen internal governance, support effective financial management and integrate social interventions without undermining core savings and lending functions. Originality/value The paper advances a three-part, trade-off-based framework for analysing SGs sustainability, integrating insights from microfinance, grassroots development and organizational theory.