Individuals who have established their credit worthiness through regular savings, character and length of employment, can earn the privilege of borrowing these savings in the form of a loan. Some loans are made for productive, income generating activities, a business idea or toward a house, other loans are made for provident purposes such as schools fees, funerals and weddings. Other loans are made to improve the quality of life of members by allowing members to buy furniture or appliances or other goods without having to carry expensive hire purchase agreements. As soon as you start your own Savings and Credit Co-operative you take greater control over your financial life. Banks have to pay high overhead costs for branches, elaborate computer systems and many salaried employees.
Banks also have to return a profit to their shareholders.
In a Savings and Credit Co-operative the user of the service is the owner and the profits stay with the members. Overheads are very low and salaries are minimized because of the contribution of volunteers. This allows the Co-operative to offer very specific financial services to members for a lot less than a bank can. Stop order deductions make savings easy and assure loan repayment, almost eliminating risk. There are no direct charges to members.