What is a credit co-operative

What is a credit Co-op

A Thrift & Loan credit co-operative is owned and controlled by the people who use its services. The profits of a co-operative are returned to its members in a form of annual dividends. Credit co-operatives are not-for-profit and exist to provide a safe and convenient place for its members to save money and get loans in time of need at a reasonable interest rates.

All Thrift and Loan Co-ops operate on a self-financing basis. On admission, a member pays a small entrance fee and undertakes to subscribe, according to his financial ability, a regular monthly saving towards the Subscription Capital. The minimum amount, required to be subscribed, is fixed in the by-laws of the Co-op.

A Thrift and Loan Co-op is a socio-economic organization formed by members. It has the following objectives:

  • 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 one of the best ways by which you can free yourself from financial difficulties and at the same time inculcate the habit of thrift. The idea of a Thrift and Loan Co-op was first mooted as far back as 1925. Wage earners were then at the mercy of unscrupulous moneylenders who charged exorbitant rates of interest. The thrift and loan type of co-operation was then introduced in Singapore to combat widespread usury and indebtedness It was also the earliest form of co-operative movement in Singapore.

  • Encourages Members to save and to be thrifty
  • Pays interest and dividends above market rates on deposits from members
  • Promotes co-operation and self-help
  • Assist members to reduce the cost of living and improve their economic position

Membership of a Thrift and Loan Co-op is open to all who are eligible as specified in the by-laws and wish to enjoy it’s services and benefits. Join SSBEC today to enjoy attractive interest rates and membership benefits!