CEBU, Philippines - One of the largest cooperatives in the country is offering its credit facilities to micro-entrepreneurs and informal vendors in order for them to get way from moneylenders who charged high interest rates.
Cebu CFI Community Cooperative founder and chairman Esperanza F. Garcia said that, among other ventures and programs that the cooperative will push this year, extending its services to small vendors is a top priority.
Garcia disclosed that only 10 percent of the 85,000 members of CFI are engaged in small businesses. These are market vendors, sidewalk vendors, carenderia operators, and other small businesses that are usually the main target of loan sharks.
Because of this, Garcia said CFI is encouraging small business owners to become members of the cooperative so they can get financial assistance they could use to grow or sustain their business without having to go through the headache of paying exorbitant interest rates.
With an initial deposit of P7,500 only, one can already become a member of CFI, and will be able to enjoy benefits such as salary loans, educational loans, productive and provident loans, emergency loans, petty cash loans, health care services and others.
As coop members, loans are charged a low interest a month, with diminishing balance on all types of loans. Members earn dividends (30% given annually), rebates, patronage refunds and incentives.
Garcia said CFI will soon formulate a program to lure small vendors to the cooperative.
The Cebu CFI Community Cooperative was established by Garcia on April 7, 1970 in response to the needs of Cebu Court of First Instance (now Regional Trial Court) employees for financial assistance. They started with only 29 members who were asked to put up subscriptions in the form of fixed deposits. The total collection was Php 200.
From a measly Php 200 start-up money, the coop has now Php7.6 billion in capitalization with a growing membership base dominated by government employees and OFWs. — Ehda M. Dagooc (FREEMAN)