Cooperative Experience

In my quest for an investment and savings plan that can help me properly manage my finances now and in the future, I joined a local multi-purpose cooperative. This is not my first time to be involved in such a group. I totally removed the negative connotation of cooperatives in my system as “magulo” (riotous) and only involves “utang” (credit or loan). I treat it now as a way of saving money. My investment or share is what they call “untouchable money”. This is because, you cannot use your money anytime you want like deposits in bank where you just present a withdrawal slip or use an ATM card. If ever you have to, the only way to get your money is withdrawing completely including your membership and requires ample time to process. The share is designed to increase, not to decrease as time goes by.

Three years ago, I was persuaded by a former collector of a lending institution to try it. He quit his job from the lending company and was offered a job in a Multi-Purpose Cooperative in Bulacan and happened to have two branches here in Bataan. At first, I was hesitant. But when I thought about the benefits that I may reap from joining, I attended the pre-membership seminar. It did not last for more than an hour but gave me a brief and good impression of how cooperatives work for itself and the members. Cooperatives manifests the true sense of Bayanihan which was described during elementary days as the collective help of neighbors in carrying a house from one place to another. Members pool their resources into a common fund that is used to create different services and products that members can avail and derive income from. I agreed in joining and invested a few thousands as share capital. Like most cooperatives, loan service is the primary income generating product of the group. It is up to the member if he or she wants to avail it. Members derive multiple benefits from getting credit. The income generated from such loan will be added to the total income of the cooperative and will be declared as dividends and will be distributed annually to each member depending upon their share or Capital Build-Up (CBU). Another income is what they call Patronage Refund. A portion of the income derived from availing the service or product is computed and returned to the member. The more services and products I avail, the more patronage refund I get. Aside from the two, the third benefit is what I like the most. I’m proud to say that in almost 3 years, I didn’t just doubled or tripled my investment but is already 5 times my initial share. I achieved it through the capital build-up system. Every time I availed of any service or product, part of the interest I pay is directly added to my share, thus increasing it. The only way that a ladder goes is up, there is no down.

There are other benefits such as Insurance, Health Cards/Medical Assistance, Livelihood Training/Seminars and Continuous Education that a member can enjoy. I am making the most out of it and I am trying to look for other cooperatives with the same standing and performance. Like any other business or investment, we need to assess the feasibility of earning or saving since it involves money and time.

Joining cooperatives made me realize one thing. There is no small investment, only small knowledge. People has to learn how to make money work for them.