Muijin

Muijin (無尽) is a traditional form of rotating credit association or informal finance prevalent in Japan, particularly historically. It functions as a type of rotating savings and credit association (ROSCA), where a group of individuals contributes a fixed sum of money at regular intervals (e.g., monthly). Each period, one member of the group receives the entire accumulated sum. The recipient is typically determined by a lottery, auction, or pre-arranged agreement within the group.

The muijin system allows individuals, especially those lacking access to formal banking services, to accumulate larger sums of money than they could save independently. The process is reliant on trust and social cohesion within the group, as each member is dependent on the others to continue contributing.

While traditionally associated with the financial needs of ordinary people, especially in rural areas, muijin have also been used for social and cultural purposes, such as financing festivals or community projects. The term "muijin" suggests "inexhaustible" or "unending," reflecting the continuous nature of the contributions and disbursements. Modern financial regulations have, in some areas, curtailed or superseded the use of traditional muijin. Similar rotating credit systems exist under different names in various cultures worldwide.