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Paluwagan, also known as a rotating savings and credit association (ROSCA), is a traditional savings system in the Philippines that has been around for a long time. This system is a form of informal banking where a group of people come together and contribute a certain amount of money on a regular basis. The contributions are then given to one member of the group at a time, with the order determined through a lottery.

A Paluwagan agreement sample is a written document that outlines the rules and regulations of the savings system. This agreement is essential for preventing misunderstandings and disputes between members of the group. Below is an example of a Paluwagan agreement sample to give you an idea of what it entails.


1. Name of the group: _________________________

2. Number of members in the group: _______________

3. Amount of contribution per member: _______________

4. Frequency of contribution: _____________________

5. Duration of the Paluwagan: _____________________

6. Order of receipt of the contributions: ______________

7. Penalty for late payment: _______________________

8. Penalties for missed payments: ___________________

9. Process for withdrawal: ________________________

10. Dispute resolution process: _____________________

11. Termination of membership: ____________________

12. Amendments to the agreement: ___________________

The above list is just an example of some of the details that can be included in a Paluwagan agreement. The agreement should also include any additional rules or guidelines that the group agrees upon.

It is important to note that a Paluwagan is not a legally binding agreement, so it is crucial to make sure that everyone in the group agrees to the terms and conditions before signing the agreement.

In conclusion, having a Paluwagan agreement sample is crucial for creating a successful and efficient savings system. By outlining the rules and terms of the savings system, it helps prevent misunderstandings and disputes between members of the group. Make sure to include all the necessary details in the agreement and to get everyone’s agreement before proceeding.