Advantages of Cooperative societies over traditional banks

cloud cooperative society

A cooperative society is different from other organizations. In this case, it is the voluntary association of people who collectively own and join funds under some financial principles in order to supply mutual help. The primary aim of cooperative societies is to tackle poverty. Aside that, it maintains a balanced economic condition for its members. Cooperative societies have low membership fee. This low membership fee will welcome a good number of people into the association. Cooperative societies treat members equally regardless of their societal and financial status.

Moreover, a cooperative society is very easy to form, it must not require a large number of people. The association basically supports human rights. Thus, everyone is treated equally. Cooperative societies also provide relevant facilities that would help to alleviate poverty in the economy. These facilities may include: farmlands for agricultural activities, exportation of products, marketing and distribution of goods through their channels etc.

Cooperative societies have the potential channels to make SME owners have a voice in the marketplace. Apart from that, the association is usually not affected by insolvency, death or permanent incapacity of its members. The society would still function properly irrespective of any difficulty. Government also extends loans at lower rates to cooperative societies so that loans can be readily accessible to its members.

Unlike traditional banks that require long processes, restrictions, large interest rates and huge collateral, cooperative societies have lower interest rates and only require guarantors for its members to access loan. They offer different types of loan. Different loan types include agricultural loan, educational loan, business and personal loan. Join Cloud Cooperative now and get access to loan facilities for your business after saving consecutively for six months.

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