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.
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.