This study investigates the impact of Village Savings and Loans Associations (VSLAs) on the livelihoods of rural poor communities in Mchinji District, Malawi, with a focus on savings, loan sizes, and interest rates. It highlights the challenges faced by rural people in accessing formal financial services, as microfinance institutions are mainly concentrated in urban areas. The study used a cross-sectional design with both descriptive and analytical methods, collecting data from 50 VSL beneficiaries. Findings reveal that participation in VSLAs has a positive impact on the livelihoods of rural people. Savings significantly increased after joining VSL groups, allowing members to accumulate capital that was otherwise difficult to access. Loans obtained through these groups were similarly beneficial, providing members with access to credit for investment and asset acquisition. However, high interest rates were found to be a major obstacle, negatively affecting the ability of rural poor individuals to borrow and acquire assets, thus limiting their economic progress. The research also found that women comprised the majority of VSLA beneficiaries. The study concludes that VSLAs serve as effective and low-cost financial intermediaries in rural areas but suggests that lowering interest rates could further enhance their positive impact. These findings provide valuable insights into how microfinance interventions can be designed to better serve the rural poor and inform future policies aimed at poverty reduction in Malawi.