You are accountable only to yourselves, the members of your Savings and Credit Co-operative. They mobilise significant volumes of personal savings and channel them into small loans for productive and provident purposes at the community level. A members monthly contribution is usually split between savings and shares. Typical Emergency loans are between R100 - R300 with a repayment period of R100 per month. Members are encouraged to save toward loans.
Loans are ratio based on members savings and shares.
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.