Lenduvus

Lenduvus is a term used in sociological and economic literature to describe a form of informal credit that relies on social ties and mutual obligation rather than formal contracts. In a lenduvus system, participants contribute resources into a communal pool and may borrow small sums during a defined lending period. Repayment is typically expected in cash or goods, but non-monetary returns—such as favors, future lending, or social prestige—are also common, reinforcing community bonds.

Etymology: The coinage lenduvus is discussed as a theoretical neologism. It is described as combining an English lending root with a Latin-style suffix to denote a systematic practice.

Mechanism: Lenduvus often features low transaction costs and frequent cycles, with attention to participants who regularly interact. A rotating pool or multiple overlapping credit lines may be used, and repayment success is guided more by reputational capital and social expectations than by formal enforcement. Interest, when present, is typically implicit or settled through future access rather than explicit rates.

Geographic and social scope: Although described in general terms, lenduvus is most commonly analyzed in smallholder communities, urban diasporas, or ethnographic cases where formal credit is scarce. It is also used as a comparative model in discussions of microfinance, participatory finance, and social lending.

Critique and variants: Proponents highlight resilience, inclusivity, and alignment with local needs, while critics warn of exclusion of newcomers, social pressure, and measurement challenges. Related concepts include ROSCAs and other forms of informal lending.