What is a credit co-operative

What is a credit Co-op

A Thrift & Loan credit co-operative is formed by members for the benefit of members, owned and controlled by members. It’s a socio-economic organisation and operates on self-financing. The profits of a co-operative are returned to its members in a form of annual dividends, subject to regulations.

On admission, a member must make monthly payments, normally $10, into his Subscription Capital account which is a form of forced saving and it shall be returned to him upon resignation from membership.

The objectives of a co-op is as follows:

  • to promote co-operation and self-help
  • to encourage thrift;
  • to prevent permanent indebtedness of its members by enabling them to obtain loans on reasonable terms;
  • to receive deposits from members;
  • to assist members to reduce the cost of living and improve their economic position.

The Co-operative Principles

All Thrift and Loan Co-ops in Singapore conform strictly to the principles of co-operation, enunciated by the International Co-operative Alliance.

  • Open a voluntary membership

  • Democratic control – one member one vote

  • Limited interest on Capital

  • Distribution of surplus to members in proportion to their patronage

  • Promotion of education

  • Mutual co-operation among co-operatives at Local, National and International levels.

Why Join a Co-op

Joining a Thrift and Loan Co-op is a safe, sound and easy way to save regularly and also borrow in times of need. It was introduced in Singapore in 1925. Wage earners were then at the mercy of unscrupulous moneylenders. The co-op movement went a long way to eradicate this problem.

Membership is open to all Singaporeans and SPRs and their immediate family members as specified in the by-laws. Join SSBEC today and enjoy the benefits!