BENEFITS OF COOPERATIVE SOCIETY TO COOPERATORS

The purpose of a cooperative is to realize the economic, cultural and social needs of the organization's members and its surrounding community. Cooperatives often have a strong commitment to their community and a focus on strengthening the community they exist in or serve. Without gainsaying, cooperatives are the forerunners of modern sustainability as displayed in their age-long principles. Cooperative enterprises have made positive contributions to sustainability through their ability to utilize the dynamics of human and natural resources within a given community for the benefit of such community and beyond.


DEVELOP A HEALTHY SAVINGS CULTURE

Cooperative societies help its members to develop a savings culture. Nobody can escape poverty without a savings habit. Anyone that spends everything on consumption is just a step away from poverty. Saving is made relatively easy with cooperatives because every member must contribute regularly without default. In most private and public organizations, such contribution is usually deducted directly from members’ income. So, irrespective of their needs, they are made to save as an obligation.

EASY ACCESS TO LOANS

Cooperatives also offer members access to loans either in cash or in the form of goods. As it is difficult for a camel to pass through the eye of a needle, so it is for the average individual to get loan from banks. For low income earners, it is even worse, because they don’t have collateral. Even for those that can meet the conditions for bank loans, the loan may not come promptly as needed. But as a member of a cooperative, loan can be accessed promptly as your contributions serve as collateral while fellow contributors are accepted as guarantors. Also, the interest rate and repayment terms are not crushing as that of the banks. This easy access to loans has helped many people achieve improved welfare.

LOANS AT CHEAPER INTEREST RATES

Co-operatives provide loans at cheaper interest rates and repayment terms are not crushing as that of the banks. This easy access to loans has helped many people achieve improved welfare and have benefited members tremendously.

EQUITABLE DISTRIBUTION OF SURPLUS

The surplus generated by the cooperative societies is distributed in an equitable manner among members. Therefore all the members of the cooperative society are benefited.

EACH FOR ALL AND ALL FOR EACH

Co-operative societies are formed on the basis of self-help and mutual help. Therefore members contribute their efforts to promote their common welfare. Cooperatives are an effective tool for self-help.

COOPERATIVES AND COMMUNITY DEVELOPMENT

Cooperatives' business structure allows its members to be more society-oriented people. It promote development that is not only society-centered but is also democratic and people-oriented. Cooperatives expand the ability of groups to participate in, negotiate with, influence, control, and hold accountable the institutions that effect their lives. This empowerment is achieved when community members work together and learn that they can rely on themselves and on their ability to act collectively to improve their personal circumstances and the well-being of their community. As people work together in a cooperative, they build up community identity, establish community norms, learn to trust each other, and commit to providing benefits for each In developing our model, we assume that individuals can achieve significant economic benefits from participation in cooperative business.

OUR SAVINGS PLAN

We have two different types of savings plan, they are:

  • Compulsory Savings- Minimum Contributions (Full Staff N10k and Outsourced Staff 5K.
  • Target Savings (Minimum duration of 1 year).

LOAN REPAYMENT DURATION

  • 18Months- 15%
  • 12 Months – 10%
  • 6 months -5%
  • 3 months -3 %
  • Salary Advance (SALAD) -2%
  • Grants – 5%
  • Mortgage Loan- This is subject to conditions that are restricted to landowners cooperators.