Usually cooperatives are very attached to a financial institution in the past, the users of this cooperative are also usually among the elderly. Including for cooperative loans. The cooperative itself is a non-bank financial institution that has a legal entity. All of this is stated in Law Number 17 of 2012. In general, cooperatives are established by the community and managed by their members. Each member has a contribution to the development of the cooperative. Why is it that cooperatives are said to be better than some other financial services? This is the reason!
The Advantages of Cooperatives Compared to Other Financial Services
Relatively Affordable Interest
Some existing cooperatives generally apply interest rates that are not much different from loans in banks. The Ministry of Cooperatives and SMEs sets cooperative loan interest rates at around 7% per year. The interest rate is also the same as the People’s Business Credit interest or commonly known as KUR.
Easier Submission Requirements
Talking about loan requirements, of course through cooperative loans, the submission requirements are easier than if applying at the bank. Other facilities, if you have joined the cooperative first, the process and requirements will be easier.
Get Remaining Business Results (SHU) Every Year
SHU is the Remaining Results of Business, SHU will usually be distributed in accordance with the agreement that was made at the beginning of the agreement. Usually this SHU will be distributed every year. Well, if you become a member of a cooperative, then you can enjoy Remaining Business Results (SHU) every year.
In addition to these advantages, official and legal cooperatives are those who have activities in accordance with applicable regulations such as:
Legal Cooperative Activities to Run
Savings and loan cooperatives have rules and conditions that are regulated in the Act. Some cooperative activities that are legal and can be carried out by cooperatives include:
- Collecting funds from members
- Distribute loans to members
- Placing funds in secondary cooperatives
Then what is secondary cooperative? Secondary cooperatives are cooperatives with members as cooperatives. This secondary cooperative has activities that are not much different from the activities of cooperatives in general. The difference is that secondary cooperatives do not allow lending to individuals. The rest is the same as savings and loan cooperatives in general.
After talking about the advantages and activities commonly carried out by cooperatives, it’s time to discuss what are the requirements needed to become a member and can apply for a cooperative loan.
Requirements to Become a Cooperative Member
Being a member of a cooperative requires several conditions, but one thing to note is that the conditions for being a member of a cooperative are different in each cooperative. Therefore these are some general conditions for being a member of a cooperative:
- Indonesian Citizen (WNI)
- Membership as an individual, not as a business entity
- Agree to cooperative rules, starting from the budget to the obligation to pay whether it is mandatory savings or principal savings
When they become members of a cooperative, the members are usually required to pay principal savings. For this principal savings usually paid only once. According to each month, members have the obligation to pay mandatory deposits. Then, there are also some cooperatives that make voluntary deposits that are similar to savings with a predetermined nominal and frequency.
The cooperative also provides loans that are usually carried out by the cooperative’s management at banks or other financial institutions. This cooperative loan is useful for the immediate needs of its members.
How to Apply for a Cooperative Loan?
Become a Member of the Cooperative
The first is certainly joining a cooperative member, before applying for a loan. By becoming a member of a cooperative, applying for a loan becomes easier and the process will be made easier. After applying for a loan normally, it will be given a form to apply for a complete loan with the necessary requirements.
Submit a Cooperative Loan with Recommendations
If there are friends or relatives who are members of the cooperative it would be easier to get a cooperative loan, because they can help recommend the proposed loan. Make sure you have good financial records to make it easier to approve.
Complete Administrative Data
Finally, complete administrative data, such as the completed submission form, a photocopy of the KTP if married, usually a photocopy of the spouse’s KTP is attached. Then some other documents such as family cards, salary slips and others. If you have completed everything, just waiting for the results.
Do you understand things about cooperative loans? Now you can consider a cooperative as a place to save and make a loan application.