Categories: Credit Financing

How to Get Cooperative Loans in Nigeria

There are many means of getting loan in Nigeria but the one that is accessible or known to people is through banks or loan apps. There are also cooperative societies that give loans to their members with little or no Interest rate.

The loan system run by cooperatives is a good one. You don’t need to fill any paperwork before you will get your loan as long as it is your turn you will be given loan. Apart from the loan, you can also save your money and receive interest.

How Cooperative Loan Works

A cooperative society is made up of a group of people with the same financial goal. Each member will have an amount to be deposited per month as saving and anybody who wants to get some cash as loan is free to do so.

But you need to have saved for some time before you can request for such loan. Most time, their loan is with no interest or with small interest.

Cooperative society is a very good idea for people that spend recklessly. You will be mandated to part away with some cash at the end of the month and when you need money, you can request for your saving plus loan if your saving is not enough.

Types of Cooperative Society Loan

With no Interest

In this society, you will not receive any interest in your saving and when you borrow you will pay no internet.

With interest

This is suitable for people that just want to save money. Here, whatever money a cooperative loans out, there will be little interest on it, and when members that save need their money, they will also receive interest.

Asset-based

This cooperative society only gives out assets. Instead of requesting for loan in the form of money, you will request for assets such as land, building and others. It can be by rotation where in each year or month one person or two will be given a property.

Requirements To Obtain Cooperative Loan

You need to be adult

Before you can join any cooperative society you need be a grown-up. They believe that grown-ups will be able to independently make financial decisions.

Have a source of income

You need to have a reliable source of income to meet up with any financial obligations imposed by the society. Depending on the type of group you join there is a certain amount you will need to pay per week or per month.

Be a member

You can only get a cooperative loan if you are a member, if not they will not even listen to you.

How to Apply for Cooperative Loan in Nigeria

Make enquiries about the cooperative society

Your first task is to make inquiries about the society you want to join, what type of loan they give, and how trustworthy they are. Although government oversees cooperative societies in each state, the fact still remains that some can still run away with your hard-earned money. It has happened to friends and close relatives before, so check very well before you join any cooperative organization.

Join a cooperative of your choice

After the groundwork, you can go ahead and join the group. To do that you will need to meet the president or leader who will tell you what you need to do.

Perform member role

There are some obligations you need to obey, such as paying a certain amount of money every month. If you don’t pay, nobody will arrest you but it will hinder your loan application.

Ask for loan

You can only ask for loan after staying with society for a long time and engaging actively in their activities. The amount of loan you can request for will be x2 or x4 of your savings. This is why you need to save every month if you are looking forward to a high loan.

Advantages of Cooperative Society Loan

No collateral

You don’t need collateral before you will obtain it. As long as you perform your obligation regularly, you will be given loan.

No paperwork

Signing robust documents and filling too many in details is not needed in a cooperative society.

Little to no Interest

If you are able to secure a cooperative loan, you will pay little to no interest. This is unlike banks or loan apps that will collect double of what they give you as interest.

Fast disbursement

Once your loan application is approved by the leader of the cooperative your loan will be disbursed right away. In fact, they might give you cash on the spot if your loan amount is not much.

Conclusion

A cooperative society is another loan option you should try out, apart from getting loan from them, you can also save your money and collect interest.

 

 

admin

Recent Posts

Loan Apps without BVN in Nigeria in 2024

Introduction Do you not have a BVN and you are in urgent need of a…

9 hours ago

2024 Tips on how to apply and get Zenith Bank Loan in Nigeria

Introduction Do you have a Zenith Bank account and need an immediate loan over your…

9 hours ago

How to Get PayHippo Loans for Small Businesses in Nigeria

Obtaining loans in Nigeria by startups, and small and medium businesses in Nigeria is very…

9 months ago

Palmcredit Review: Things You Should Know

I will start this article by saying words of appreciation is not enough for whoever…

9 months ago

Sokoloan App Review: All you Should Know

Have you ever been worried about where to get bail out from financial burden? Well,…

9 months ago

Rent Loans In Nigeria: Everything You Should Know

Housing is regarded to be one of the essential needs of life. Without a house,…

9 months ago