The savings and loans club is an informal organization that collects the monthly dues of the members and to lend the money to the members. Think if there are 20 members who would deposit 100 every month then that is 2,000 dollars that you can lend every month. There is an interest on the loan plus service charge for the accountant and collector. At the end of the year all the money are divided among the members. It is a good way to invest money.