When I first joined the credit cooperative a few years ago, I attended a seminar but I really do not know how it will work for me. The cooperative has given me the cooperative lending guidelines and general information. The vision, mission and services of the cooperative can be found in the general information. In the cooperative lending guidelines, the terms and conditions can be found. There is also a guide and examples of loan computation so the members can have an idea.
Passbook - how a credit cooperative works?
Take note that there are different requirements, rules and policies of a cooperative. To become a member you should know the requirements and qualifications of a cooperative.
How a development/ Credit cooperative works? The main objective of the cooperative is to to help each member in their financial needs by providing affordable financial services. The privilege of the member to apply for a loan is the most beneficial factor in a cooperative. A credit cooperative member is also the co-owner of the cooperative that is why there is a share capital requirement. The share capital funds becomes the revolving fund of the cooperative to be used for the lending transactions and other services depending on their policies. For new members, normally they are allowed to loan the amount of their share capital. When a member takes a loan, some portion of the amount were deducted to be moved to the member’s savings, service fee, loan interest, etc. depending on their policies. A member should be paying in good standing in order to avail bigger loan amount in their succeeding loan application. There are classification of members which are based on the history of their payments. Usually, good Payer members are classified as Class A standing and they have the benefits to loan up to 3X of their share capital.
Some might be thinking on what are the Basic qualifications and requirements of a cooperative. As a member for almost seven years now, I have learned that a development/ credit cooperative is a good investment. Based in my experience, most members of the cooperative are housewives who have extra businesses. At first, I was too shy because the average members age are 35 above but when I reached the age of 30, I became more confident with their transactions.
Basic qualifications and requirements of a cooperative:
- A resident of the area of operations of the cooperative.
- Any person of age 18-60 years old.
- Employed or operating a business within the areas of operations. If self-employed, speak with an account officer and they may require you bank statements or proof of your income.
- Applicant should attend a seminar and must submit a 2X2 photo and any of the following requirements:
Birth or Baptismal Certificate
Any valid identification card
If employed, certificate of employment and latest pay slip If engaged in business, business permit or barangay business certificate for small business owners.
- An applicant should prepare an amount for the membership fee, share capital, savings or mutual benefit fund. The initial amount depends on the cooperative requirement. Currently, when I compared the initial amount among cooperatives most require the member to deposit and maintain PhP2,000 for the share capital.
Before you join a cooperative it is always best to examine their status. Speaking to a person who is an old member may give you an idea of how beneficial a cooperative is and how sturdy it is.
It is almost seven years now when I joined a credit cooperative. My aunt encourage me to join last 2005 when I was still single and now that I have a family I can really say that it is a good investment. Before the cooperative that I joined was a credit cooperative then it became a development cooperative because it reached a good statistics. It only means that members are growing and their life is progressing.
credit cooperative passbook investment
A cooperative is a business organization owned and operated by a group of individuals for their mutual and finance benefit. The major objective of the cooperative Continue reading