This case study describes the design, implementation and results of piloting a debt-to-savings product in India. The product combined a loan with a commitment savings device that targeted microfinance users who cover everyday expenses through borrowing. The design was tested in India with a loan that allowed borrowers to set up their own backyard poultry farming unit. The pilot was terminated prematurely due to institutional and operational challenges.
Commitment devices facilitate self control by allowing the customer to set aside future money and prohibiting withdrawal from these funds for a set period. The pilot product allocated funds to savings through automatic deductions which were used as payments against the outstanding loan and as savings contributions.