Credit Consumer Cooperatives

Posted by marmara on July 22, 2012

Savings and loan association, uniting the money of shareholders, existed before the revolution. Until recently, credit cooperatives are an integral part of the market savings and loan services in Russia. Activities of credit consumer cooperatives of citizens (KPKG) is regulated by the Federal Law on Credit Consumer Cooperatives of Citizens "from 07.08.2001 117-FZ. This document defines a consumer credit Cooperative of Citizens as a voluntary association of individuals for financial assistance to one another: for saving your personal finances and the provision of loans of which only members of the organization on a reciprocal basis. Activities kpkg reduces mainly to attract deposits through personal funds of the cooperative members and provide loans to needy members of the cooperative in the media.

In a credit consumer cooperative citizens of developing a foundation of mutual financial assistance, which is a source of loans. Fund financial mutual is formed at its own expense credit consumer cooperatives of citizens, as well as personal savings of the credit consumer cooperative, transferred under the contract for the use of credit consumer cooperatives of citizens to provide loans to their members. Any shareholder may kpkg get a cash loan for the necessary needs or to purchase various goods and services (cars, furniture, household appliances, to pay for education, treatment, recreation, etc.). Loans are granted for a period of several months up to 3 years. Subsequent loans are issued after the repayment of previous loans. Loans from credit cooperative is much more accessible to their members than bank loans: easy application procedure, there is no strict requirement to documents, faster time of issue of money. "Short money" is quite expensive, and the interest rate in cooperatives may exceed the bank, but none the less demand there. Conditions and procedure for obtaining loans to members Credit consumer cooperatives of citizens are governed by the Charter kpkg.

However, according to the Federal Law on Credit Consumer Cooperatives of Citizens' kpkg no right to issue loans to citizens, not members of the credit consumer cooperative, as well as give out loans to legal entities. The maximum size of loans issued by a member kpkg, and the size of the fund established by the Charter Mutual Financial kpkg or decision of general Meeting of the members. Transfer of funds to credit consumer cooperatives of citizens to its members executed a written loan agreement. kpkg member can be any Russian citizen, if he paid entrance fee kpkg satisfies the requirements of the Charter kpkg and pay a monthly share contribution. The number of the credit consumer cooperative citizens can not be less than fifteen and more than two thousand people. Each member of the cooperative is also the client, owner and manager, investor and borrower. Members of the credit cooperative to decide how to be their co-operative, self-control which services and under what conditions should provide a credit cooperative, elect their leaders, supervise their work and so on. Conditions offered kpkg can be quite attractive, but remember that credit and consumer cooperative is not a banking organization, therefore, the state does not guarantee the safety of deposits kpkg members.

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