THRIFT
& CREDIT
Building Savings; Creating Wealth
The primary objective of a cooperative society is to cultivate a savings culture in individual member’s life. It is an age-long established fact that nobody can escape poverty without a savings habit. Anybody that spends everything on consumption is just a step away from poverty and its various consequences, no matter how rich the person is today. The story of the prodigal son is instructive in this regard. No matter how much a man earns a percentage of it should be kept aside as savings.
CBN COOP has given her members ample opportunity to build their saving as active or retired member by monthly contribution of N10,000 and N5,000 respectively. Apart from securing their funds, it equally qualify them for annual savings bonus payable after every Annual General Meeting.
The Member savings of the Society has consistently grown approximately by 12% per annum as shown below
SAVINGS
SAVINGS BONUS
COOP CREDIT FACILITY
The society avails her member credit facilities for personal and project needs at a very moderate rate. The rates are subject to review every financial year. The prevailing rates for the year 2020 stand as follows:
Loan analysis by interest yield
|
Tenor (months) |
Interest rate |
Normal loan |
12 |
5.0% |
Special loan |
12 |
12.5% |
Short term loan |
6 |
6.0% |
Short term loan |
3 |
4.0% |
Short term loan |
1 |
3.0% |
Commodity loan |
12 |
5.0% |
Investment loan |
48 |
11.75% |
LPO Financing |
3 |
7.5% |
LOANS
Loans may be granted to Members, subject to AVAILABILITY of funds and shall be for purposes, which in the opinion of the MC are productive or necessary, and in the best interest of the borrower.
Categories of Loans
The MC may grant such categories of loans as may be approved from time to time which may comprise, but not limited, to the following:
1. Normal Loan
2. Special Loan
3. Short–Term Loans
Short-term loans may be granted to Members who have urgent needs subject to a maximum limit of 5 times their net savings balance or any amount as the MC may determine from time to time, provided fund is available and the borrower has the ability to pay within the specified terms.
4. Investment Loans
The Society may obtain funds from a Financial Institution, investing Members, or any other approved source(s) at favorable terms and lend to Members at tenure longer than One Year. The terms and conditions of the loan shall be determined by the MC.
5. Consumer Loan
The Society may facilitate the purchase of consumer goods at a favorable price and sell to its Members. The terms will be determined by the MC in accordance with prevailing situations and market conditions.
6. Project Financing
The Society may finance Members housing and other projects on such terms and conditions as may be determined by the MC from time to time.
7. Asset Acquisition Financing
The Society may finance Members acquisition of assets on such terms and conditions as may be determined by the MC from time to time.
Conditions for the Grant of Loans
No-loan shall be granted to:
Applications for Loans
All applications for loans shall be made to the MC. The MC shall put in place necessary procedures for the processing, review, and approval of loans. Appropriate channels have been established for the control and disbursement of loans within a reasonable time frame.
Loans to Members
Maximum Credit Limit
Security for Loans
Duties of Guarantor
A guarantor must be an active member of the Society and shall personally be responsible for:
Administrative Charges on Loan
Repayment of Loans
All Normal and Special loans shall be repaid within 12 calendar months. However, loans may be repaid or recalled before the expiration of 12 months.
Sources of Funds
The sources of funds for the Society shall be made up of:
(i) Membership registration fees
(ii) Check-offs from salaries and allowances
(iii) Interest on loans from members and non-members
(iv) Earning from other businesses of the Society.
(v) Shares subscription by members of the Society
(vi) Brokerage fees on loans, Commodity sales, projects
(vii) Funds raised or grants obtained from external sources;Government Institutions, Development Agencies, including the capital market, and
(viii) Other sources approved by the statutes/Bye-laws of the Society.
Savings
Ordinary Savings
Monthly Check-out from Salary. Every member shall endorse a letter of authority online for the deduction of his/her contribution from the monthly salary.
Special Savings
Members may make special savings with the Society and such shall not be used in the calculation of interest/loan until three (3) months after
Special Withdrawal from Savings
50% withdrawal from members savings balance provided he/she has no outstanding loan. It is interest-free and accessible four (4) times a year where necessary. Eligible to members who are up to 6months in the COOP
Minimum monthly Contributions
N5000 for Junior Staff, Retirees and Pensioners
N10000 for Senior Staff
N20000 for Management Staff
Benefits of COOP Savings
• Deduction is from Source
• Plan for targeted expenses, reduce or eliminate unnecessary expenses.
• Plan for future goals- education, training, etc
• Plan for emergencies
• Investment Planning
• Retirement Planning
• Wealth Management = Moderate to high yield returns
Non-payment of Savings
i. A Member who refuses to make savings for a consecutive period of 12 months shall have his accounts dormant and technically suspended.
ii. Where Membership is suspended for reason of refusal to make monthly savings, such Member shall not exercise his/her membership rights as enshrined in the Byelaws unless the account is reactivated.
iii. A Member whose membership is suspended for reason of refusal to make savings can have his account reactivated and rights restored upon payment of savings for at least six (6) consecutive months.
Withdrawal of Savings
i. No member can withdraw the whole of his regular savings except upon withdrawal of membership after giving a minimum of three (3) months’ notice to the Society.
ii. Savings withdrawal shall be allowed at a maximum of 50% of savings balance, provided the member have no loan running at the time of application and have saved continuously for a minimum of six (6) calendar months
iii. Withdrawal from regular savings shall be allowed at most once in an interval of 90 days.