Cooperative loans are an alternative funding when someone is faced with an urgent financial need. This problem often occurs when someone has no savings or savings.
Initially, this loan was only for its members, but as the development progressed, the cooperatives also provided loans to non-members.
Conditions for Submitting Cooperative Loans
To get a cooperative loan, you must meet several conditions, including:
- Indonesian Citizen (WNI).
- Membership of the cooperative is individual and not in the form of a legal entity.
- Pay mandatory savings and principal savings in accordance with applicable regulations.
- Know and agree to the provisions of the articles of association, by-laws, and the provisions that apply in cooperatives.
Apart from these requirements, you must also register yourself as a member of the cooperative. By becoming a member, you will easily get a loan.
How to Apply for a Cooperative Loan
Basically, a cooperative that specifically provides loan services is a savings and credit cooperative. Now as a start to the submission process, you must fill out the forms provided at the cooperative’s office. In addition, also prepare the following files.
- Photocopy of personal ID card and bring a photocopy of husband / wife’s ID card for those who are married.
- Photocopy of family card (KK).
- Original salary slip.
- Electricity bills.
- Photocopy of asset file as collateral for the loan.
How to submit it? Let’s discuss the steps one by one.
1. Complete the proposal for the purpose of using funds
When applying for a loan, you must complete a proposal containing the purpose of using the funds as the cooperative will ask for its purpose. Whether for business capital, health care, renovation of personal property, or others according to their individual needs.
2. Waiting for the cooperative to approve the loan proposal
The cooperative will examine and consider the loan proposal that you submitted. But don’t worry, if you have fulfilled the requirements imposed by the cooperative well, then the loan funds should be processed quickly.
3. Waiting for the cooperative management to provide a loan agreement and loan agreement
If the application is approved, the cooperative’s management will provide an agreement regarding the repayment and term of the loan. This matter will be agreed between the borrower and the board together.
Types of Interest Charged on a Loan
There are several types of interest that you should know as an illustration as well as an estimate of the amount of your installment in the future.
1. Declining interest
This declining interest type is influenced by the amount of the principal loan. For example, if you apply for a loan with a small value, the interest paid will be small.
2. Flat interest
Flat interest is always applied to short-term loans. In other words, the nominal interest paid will be the same every month.
3. Interest decreases effectively
Loans with an effective declining interest system are considered quite attractive because credit interest is calculated from the final balance each month. As the amount of the loan will decrease each month, the amount of interest paid every month will certainly shrink even more.
Strengths and Weaknesses of Cooperative Loans
Naturally you consider the pluses and minuses of a product before taking it, right? The advantages and disadvantages which will be explained below.
The advantages of cooperative loans
There are four advantages that can be obtained from this service, namely:
- The loan mechanism is considered easier and less hassle.
- The loan application and disbursement process can be faster.
- There is an option to apply for a loan without any collateral.
- Lower interest rates.
Weakness of cooperative loans
On the other hand, you must also know about the weaknesses as follows.
- The amount is limited if you need a loan or large capital.
- Weak competitiveness.
- Each member has a low level of awareness.
- Very little professional ability.
It turned out that the loan application process in the cooperative was easy and not difficult. However, the amount that can be obtained may be lower. May be useful!