cooperative for a good life.docx

8/20/2019 COOPERATIVE FOR A GOOD LIFE.docx

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INTRODUCTION:

Occupy Wall Street re-ignited our connection to a basic truth: we are all in this

together. Solidarity is key to any decent arrangement of life as it moves us to find the

common good of all of us. 202! the "ear of the #ooperative! could not be more timely. $s

there an institution that embodies this truth more fully% &here is a special beauty and

power about cooperatives worker! consumer! and producer. $nherent in its design is the

capacity to connect individuals! their individual interests! and their lives to goods and

interests larger than themselves. 'or sure this happens in the bonding between co-

operative work partners as they share the intimacies! values! hopes! and productive efforts

of their work lives. (ut it can! and often does! go well beyond that. ) cooperative can be

a social and political institution as well as an economic enterprise through which

individual members can consciously connect with and serve the common good of us all

starting with their community! then onto a network of like cooperatives such as the San

*ionisio #redit #ooperative in +ara,aue ! onto the whole cooperative movement here in

the +hilippines.! and onto all other movements and efforts for greater democracy!

cooperation! peace! economic well-being! and ecological sanity. &his capacity for

concrete connectedness can enable an individual cooperator to become and eperience an

active center having a rippling effect throughout our entire web of mutuality! which we

call /nature or /universe. With such awareness they can know that they touching the

common good of us all.

One word captures all of this 1 solidarity. )s eciting as this sounds and often it

is that eciting it is also uite challenging. aving a deep awareness of how one is

connected to everything forges a deeper and more sensitive responsibility for everything.

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)s such it can keep pressuring one to grow and develop as a conscious and caring being!

3ust as any deep and meaningful relationship does. 4ach coop can be an incubator for

developing this kind of self-fulfilling awareness and responsibility. 'or eample!

individual co-operators are constantly learning how to integrate their self-interests with

those of their fellow workers and members. )nd any co-operative worth its salt does this

while taking into account their role in its immediate community and local area where

decisions and actions have the most impact. With its 5!000 members and a highly

functioning system for organi6ing member contribution! can afford to contribute some

member time to other community pro3ects in need of special skills. &his kind of capacity

illustrates how cooperatives and networks of cooperatives can be a vehicle for reaching

deep into a community and promoting its common good.

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RATIONALE:

#ooperatives! as economic enterprises and as self-help organi6ations! play a

meaningful role in uplifting the lives their members and their local communities. Over

the years! cooperative have successfully operated locally owned people-centered

businesses while also serving as catalysts for social organi6ation and cohesion. With their

concern for their members and communities! they represent a model of economic

enterprise that places high regard for democratic and human values and respect for the

environment. )s the world today faces unstable financial systems! increased insecurity of

food supply! growing ineuality worldwide! rapid climate change and increased

environmental degradation! it is increasingly compelling to consider the model of

economic enterprise that cooperatives offer. &he cooperative sector! especially in

developing countries! also presents itself as an important element that can contribute to

the reali6ation of the 7illennium *evelopment 8oals 97*8s by 20;. &he current

financial crisis characteri6ed by the massive public bail-out of private! investor-owned

banks worldwide has underlined the virtues of a customer-owned cooperative banking

system. &he cooperative is form of credit unions! building societies! by focusing

primarily on the needs of their members! have displayed prudence and avoided the

ecessive risk-taking that plagued many large global financial institutions. )s cooperative

continue to operate and provide loans to their clients and en3oy the trust and confidence

of their members and depositors! they play an even more critical role as consumers and

businesses face a credit crunch. &he cooperative is also relevant in addressing the

problem of food insecurity. )ccording to the World (ank estimates that food demand will

double by 20


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is an urgent need for developing countries to increase the output of food yet! as the World

(ank=s 200> World *evelopment ?eport on )griculture for *evelopment has shown! the

rural economy has been badly neglected. One solution is to encourage farmers to

mobilise collectively in agricultural and marketing cooperatives that engage in the

production! processing and marketing of agricultural products and give them access to

markets. 'armer cooperatives are growing in most developing countries. 'or eample!

$ndia=s 00!000 dairy cooperatives collect 5.; million liters of milk from 2 million

farmer members every day! making a significant contribution to $ndia=s food supply.2

@evertheless! farmer cooperatives have yet to reach their full potential as they address

their reuirements for financing and technical support. #ooperatives can contribute to the

achievement of the 7*8s by 20; because of their inherent characteristics. (ecause

cooperatives are economic associations! they provide the opportunity for poor people to

raise their incomes. (ecause they are democracies with 2 each member having one vote!

they empower people to own their own solutions! and because they pool risks at the level

of the enterprise and offer micro-insurance they increase security.< $n addition! there is

increasing evidence indicating that cooperatives also contribute directly and indirectly to

meeting several of the other 7*8s! such as primary education for children! gender

euality and reducing child mortality. &he cooperative enterprise also presents an

important model as many of the worlds poorest and disadvantaged face social eclusion!

lack of access to opportunities and growing economic ineuality. )s the uneven effects of

globali6ation have led to a rise in the unregulated informal economy! workers in the

informal sector have formed shared service cooperatives and associations to assist in their

self-employment. $n rural areas! savings and credit cooperatives provide access to

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CONCEPTUAL FRAMEWORK:

ow can cooperatives respond to the issues of fighting poverty and eclusion in

ways that do not distract them or undermine their struggle for competitiveness% &he gap

between rich 2 and poor cooperatives is almost as large as the gap between rich and

poor societiesBnations. &he largest cooperative societies become transformed by

commercial and professional practices in directions that challenge their continued

structure and the relevance of their original cooperative purposes. 9*r ans-*etlef

Wulker! CCD 7embers see their cooperatives in purely instrumental terms as a means to

gain personal benefits for themselves and their families. &here is nothing wrong with this

but something is loss of the cooperative identity with such an over emphasis on benefits

to members. We need a compensating and balancing reminder of the need for cooperative

member responsibility and solidarity. &he erosion of traditional social structures that

supported the early development of cooperatives and the increasing fragmentation and

individualism within society has made it harder for co-operatives to successfully identify

their social constituency or purpose. We may be rewarded for an eploration of a renewal

of the volunteer participatory ethos that has been so important for cooperative

development. #ould it be re-ignited and channeled into community based anti-poverty

activities that cost the cooperative very little in terms of its business costs but gives

valuable support to the cooperative both commercially and socially. 8iven the wide range

of voluntary associations capable of mobili6ing dedicated volunteers for a range of good

causes this does not seem a totally unrealistic proposition. #ommercially the cooperative

benefits in two ways: firstly! by promoting its positive image 9brand in the community!

and secondly! by raising the economic and social vitality of the communities in which it

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operates the cooperative creates a better economic environment for the conduct of its

business. Socially volunteers can support the cooperatives social purpose of community

building and distributive 3ustice as an end in itself. (y cooperative community approach

we mean an approach that focuses on the informal communities made up of networks of

families! friendships and acuaintances to establish a set of networks that can provide

autonomy rather than self-sufficiency but that has the potential if necessary to provide for

minimum subsistence and socialBpsychological needs. &he study of how cooperative can

changed and developed. )nd how this development could be improved or facilitated is a

neglected area of social investigation. $t is my belief that they can stand at the basis of the

formation of higher order formal socio economic relationships such as co-operatives!

which in their turn binds the wider social identity and formal institutional frameworks

together. &he cooperative approach includes the recognition that the eperience of

poverty and people=s response to it has a spiritual dimension as well as a material one.

&he negative impact on the human spirit of failure to achieve an acceptable standard of

living and sense of purpose in life and the broken or damaged relationships that can arise

from this eperience involves depression! loneliness! apathy! lethargy! low self-esteem!

anger and violence. $n some cases it is the breakdown in relationships themselves! the

eperience of re3ection! the sense of not belonging! the loss of loved ones that results in

loss of 3obBincomeBhome etc. &hat there are economic conseuences flowing from the

spiritual condition of individuals is a further 3ustification for seeking a paradigm that

addresses both these aspects of poverty. &he member relations departments in the primary

co-operative societies would probably be an appropriate link agency 3ust like for

@orthern emisphere #ooperatives and those in developed Southern emisphere

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economies. $n less well-resourced cooperatives one would epect leaders < and

committee members would network with lay members and eisting women=s groups and

traditional networks to provide a facilitating forum and source of information and advice

on possible appropriate local resources. &he role is one of encouragement for groups and

families to associate. &heir purpose is to identify appropriate under used domestic capital

and labor and the local pro3ects upon which such labor and resources could be applied. $f

necessary and appropriate! some micro funding to get the process started could be

provided but in the main the pro3ect would be based on the assumption that micro funds

would be found from within the resources of the poor community itself. &he key function

of the formal cooperative structures as facilitators is to bring members together to discuss

whether they could use their family and friendship networks in their communities to

organi6e small meetings of likely participants to discuss their needs and the possibilities

for action within the framework of their families and homes. $t is under employed and

unemployed members or friends and family relatives of members that would be

encouraged to be involved. &he success of this strategy will be dependent on the etent

that the people themselves see any direct benefit or advantage. &hose already fully

committed to farming or other employment would not be involved ecept as an

occasional provider of advice or epertise or micro funding from their discretionary

income. $n many rural areas such as in other countries eisting primary credit cooperative

societies have facilities which carry a few domestically produced products given to the

#ooperative to raise money. &here may in many cases be plenty of space for additional

lines. $n these circumstances surplus domestic production could be echanged directly

through the cooperative facility enabling both the individual and the co-operative to earn

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etra money. &here is no infleible dividing line between the domestic and the money

economies. What is reuired is a rather more balanced relationship where the value of

domestic production is recogni6ed and facilitated.

'igure 2: provides an overview of the roles and relationships between the money and

domestic economies within a co-operative framework. $t is critical to understand that the

poor will always have to spend the ma3ority of what little money they have but that small

savings can be encouraged. *omestic production will not! however! reduce overall

demand for goods and services. $t will simply give the poor more choices as to how to

spend their money. *omestic production will create demands for products and services

not reduce them. *omestic production is actively utili6ing unused and under - utili6e

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resources that can create added value for the general good. &his programmed will not be

able to create community where it does not eist but it may possibly be able to play a role

in revitalising eisting communities! groups and families by providing an economic

content to social interactions. $t will also assist the primary co-operatives to strengthen

their links with their local community or society. 4ncouraging such domestic economy

activities as /*o $t "ourself 9*$" repairs and maintenance can be seen to be socially

integrating because they are already widely undertaken by better off as well as poorer

classes in society.

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REVIEW OF RELATED LITERATURE:

$n their most basic form! cooperatives are 3ointly owned enterprises engaging in

the production and distribution of goods and services. 7embers operate these enterprises

for their own mutual benefit. &he use of cooperatives in fostering rural community and

economic development has received considerable attention! with much work focused on

the use of agricultural cooperatives as a means for promoting local economic

development. 9(endick and 4gan! CC;E 7adane! 2002E +hillips! 200F.

#ooperatives serve several purposes. 'irst! they allow for local human! economic!

and natural resources to be maimi6ed with a great deal of local control. Second! while

immediate economic opportunities may arise from cooperatives! they also allow for

longer-term sustainable economic development in areas that traditionally have had little

opportunity to engage in such processes 9(endick and 4gan! CC;E 7adane! 2002E

8ordon! 200F. (y providing a local 3ob base! public input! and clear linkages to local

development! cooperative members take a much more active role in local development

than they do in pro3ects designed by etra-local organi6ations or interests.

4ually important! cooperatives can serve to enhance essential social structures and

identities! establish lines of communication and interaction! and support cultural

components! which are seen as being vital to the development of community 9Wilkinson!

CC. &hey can help to develop not 3ust the people but laso the whole community.7any

communities! either out of necessity or by choice! have come to rely on local residents to

provide services and support functions to ensure community survival 9(endick and 4gan!

CC;E Guloff and (ridger! 200


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and can contribute to community identity! culture! and social support systems. &he

importance of these characteristics increases as cooperative partners rely more on each

other to produce goods and establish operational procedures for the organi6ation. (y

bringing together diverse parts of the community that present a variety of skills! the

community is enhanced. &hrough this process! more direct and purposive efforts designed

to further enhance local well-being emerge.

Benefits of Cooperatives

&he tangible benefits of using cooperatives as a community and economic

development tool include increased economic traffic! employment opportunities! support

for essential community structures! and potential declines in out-migration 97adane!

2002E 8ordon! 200F. &he use of cooperatives can also have a direct impact on

community cohesion and development 9Guloff and (ridger! 200


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residents! they would aid in supporting community identity! local reinvestment! and

economic stability.

'inally! cooperatives could be used in collaboration with government and

nongovernmental programs. &hey could augment eisting programs and provide primary

economic opportunities in areas not reached by state and nongovernmental programs. $n

these locales! cooperatives would build on established traditions of community

involvement 9religious events! sports! arts! cultural items! and natural resources. $n

addition! the use of speciali6ed cooperatives could possibly fit well with HS*)!

#S?44S! H'B$')S! and other programs seeking to help local communities build on the

uniue characteristics of their area.

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DEFINITION OF TERM:

A!!eviate" to reduce the pain or trouble of 9something : to make 9something less

painful! difficult! or severe.

Cooperative" is an autonomous and duly registered association of persons! with a

common bond of interest! who have voluntarily 3oined together to achieve their

social! economic! and cultural needs and aspirations by making euitable

contributions to the capital reuired! patroni6ing their products and services and

accepting a fair share of the risks and benefits of the undertaking in accordance

with universally accepted cooperative principles. #oo$ Life" a life marked by a high standard of living! the kind of life that people

with a lot of money are able to have.

ICA" $nternational #ooperative )lliance 9$#) is a non-governmental co-

operative federation or! more precisely! a co-operative union representing co-

operatives and the co-operative movement worldwide

• MD#s "7illennium *evelopment 8oals 97*8s are the worldIs time-bound and

uantified targets for addressing etreme poverty in its many dimensions-income

poverty! hunger! disease! lack of adeuate shelter! and eclusion-while promoting

gender euality! education! and environmental sustainability.

• Povert%"the state of being poor! #ondition where peopleIs basic needs for food!

clothing! and shelter are not being met

• . UDA"Hnited States *epartment of )griculture

I#NIFICANCE OF T&E TUD':

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https://en.wikipedia.org/wiki/Co-operative_federationhttps://en.wikipedia.org/wiki/Co-operative_federationhttps://en.wikipedia.org/wiki/Co-operative_unionhttps://en.wikipedia.org/wiki/Co-operativeshttps://en.wikipedia.org/wiki/Co-operativeshttps://en.wikipedia.org/wiki/History_of_the_cooperative_movementhttps://en.wikipedia.org/wiki/Co-operative_unionhttps://en.wikipedia.org/wiki/Co-operativeshttps://en.wikipedia.org/wiki/Co-operativeshttps://en.wikipedia.org/wiki/History_of_the_cooperative_movementhttps://en.wikipedia.org/wiki/Co-operative_federationhttps://en.wikipedia.org/wiki/Co-operative_federation


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&his study will be a significant endeavor in promoting cooperative movement in

the community. &his study will also be beneficial to the students and instructors of +H+.

&o employ effective learning in their classroom setting particularly in different concepts

related to the use cooperative sub3ects. (y understanding the needs of the students and

benefits of uality education! these instructors and students be assured of a competitive

advantage. 7oreover! this research will provide recommendations on how to evaluate the

performance of a certain institution in accordance of how cooperative helping the

community.

7oreover! this study will be helpful to the cooperative industry and business

practitioners in training and informing them in the community! ob3ectives! and strategies.

$t will also serve as a future reference for researchers on the sub3ect of #ooperative

*evelopment 'ramework and +erspective . )nd importantly! this research will educate

the community on how cooperative will help them. $n giving a good life and a better

future in the community! #ooperative industry is really fulfilling its responsibility to the

community or is 3ust showing off to promote cooperative movement.

&his research will help them to think. ow cooperative can help the

community. @ot 3ust also providing their needs. (ut also to educate the people on how

cooperative give us a better community. ow cooperative can fight the poverty. )nd how

they can give the a good life to the people

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C&APTER IICAE PREENTATION

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PROFILE:

Na(e of Coop: San *ionisio #redit #ooperative

A$$ress: 0;;F Juirino )venue! San *ionisio! +aranaue #ity

ervi)es Offere$:

avin*s Deposits+ Ti(e Deposits+ an$ A!,ans%a ,o sa COOP

Savings *eposits and &ime *eposits are two of the services we offer to all our

members and special depositors. )ll members and special depositors can deposit and

withdraw their savings deposits anytime during office hours. &he interest rate for

savings deposits is 2K p.a.!eempt from withholding ta. &he interest is computed

daily! compounded uarterly. ) minimum of +!000 savings deposit is reuired in

order to earn interest. )ll members have their own passbooks in order for them to

monitor their savings deposits-

Loan ervi)es

84@4?)G O(L4#&$M4S:

8ranting loans to members is one of the most important functions of San *ionisio #redit

#ooperative. &he by- laws state that the #redit #ommittee has a general supervision over

all loans to members.

$n the evaluation of all loan applications! the #redit #ommittee and its staff shall inuire

carefully into the real purpose of the loans and must satisfy themselves that every loan

promises to be of benefit to the borrower. owever! it is also their duty to see to it that the

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#ollateral- offered by the member-borrower to secure the loan. 4. &!

memorial lot certificate! motor vehicle! machinery and euipment! home

appliances.

#apital - of the member-borrower in the form of hisBher share capital and savings

deposits.

#ondition - factors affecting the member-borrower which includes the nature of

the pro3ect! business and kind of competition it has! profile of customers and

suppliers as well as the prevailing socio-economic and political condition of the

community.

#o-makersBguarantors - of the member-borrower which refer to the credit

standing of other members who! by written agreement! commit to conditionally

answer for the payment of the member- borrower=s obligation when due and

demandable.

$$$. &"+4S )@* +H?+OS4S O' GO)@:

+roductive Goans - are those for the purpose of generating incomeB business and

or creating opportunity for employment.

+rovident Goans - are those not primarily intended to generate income nor to

create an opportunity for employment but for the primary purpose of giving

financial relief to the borrower and hisBher family.

Special Goans - this type of loan is over and above the loan ceiling for the regular

loan.

Special Goans - ousing - this type of loan is intended for the purchase of a lot!

house and lot! assumption of mortgage or house construction .

./a!ifi)ations for Avai!in* of pe)ia! Loan0pe)ia! Loan"&o/sin*

. )t least three 9


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2. 7inimum Share #apital 9'ied *eposit of + ;!000.00


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first degree of consanguinity: aunt! uncle! nephew! niece

first degree of affinity: mother in lawB father in law.

Secured Goan - any loan! the amount of which is eual to or less than the total

share capital! savings deposit and time deposit of the memberE borrower pledges

hisB her deposit as full collateral.

)ppliance Goan- this type of loan will be primarily used for acuiring household

appliances. #o- makers or guarantors are not reuired and all members in good

standing are ualified to avail of this type of loan.

OT&ER PECIAL T'PE OF LOAN:

)dditional 4ducational Goan 9+rovident 4duc - this type of loan is intended for

educational purposes. &he paid portion of an eisting loan can be availed of.

)dditional Secured Goan - is euivalent to the paid portion of a secured loan or

deposit of member-borrower.

#haracter Goan - this type of loan does not need a co- maker nor guarantor nor

collateral. )ll members in good standing are ualified to avail of this loan.

. ) member-borrower can avail of a character loan simultaneously with a

different type of loan! even with no eisting loan 9provided heBshe has

previous credit records! with a newly released loan! provided most recent

loanBs or present loanBs isBare updated and has not incurred 20 K past due.2. ) character loan can be granted to a member-borrower even if most recent

loanBs or present loanBs hasBhave fineBs provided arrears have not reached 20K

past due.

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months.;. ) @on- 7$8S member-borrower can avail of a character loan! euivalent only

to D0 K of ;0 K of his share capital! but not to eceed + D!000.00.5. SpouseIs consent is not reuired.

D. @o collateral or guarantor is reuired and is not sub3ect to any loan charges

ecept for monthly interest.>. @o refinancing

Me$i)ine0Cons/(er Loan " this type of loan is for the purchase of medicineB

groceries and other commodities at our (otica *e San *ionisio.

. ) member-borrower can avail of medicineB consumer loan simultaneously with

different type of loanBs or without present loan 9but with previous credit records

provided most recent loanBs or present loanBs isBare updated and has not incurred

20 K past due.

2. ) medicineBconsumer loan can be granted to member-borrower! even if most

recent loanBs or present loanBs hasBhave fineBs! provided arrears have not reached

20 K past due.


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D. @o guarantor or collateral reuired! sub3ect to service fee and social fund loan

protection.

>. SpouseIs consent is optional.

C. ) @on-7$8S member-borrower can avail of a privilege loan euivalent to D0 K

of the paid portion of hisBher outstanding loan but not to eceed +0!;00.00.

Ri)e Loan " this type of loan is intended for rice only.

. 7embers with good credit recordBupdated in the payment of eisting or previous

loan9s.

2. ) rice loan can be granted to a member-borrower even if most recent loanBs or

present loanBs hasBhave fineBs! provided arrears have not reached 20 K past due.

F. 7aimum of two sacks 900 kilos per member is allowed.

;. Only One 9 sack 9;0 kilos can be availed of by a @on- 7$8S member-

borrower.

5. &erms of payment:

• 'our 9F mos. to pay for two92 sacks 9 00 kilos .

• &hree 9


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• One 9 mo. &o pay for N sack 92; kilos .

• @o service fee and social fund loan protection shall be collected.

• @o guarantorB collateral reuired.

• SpouseIs consent is optional.

COOP &ea!t4)are Loan " shall deliver etensive and effective health care

services to S*## members and their dependents at reasonable annual

membership fees. &his program aims to keep our members healthy! because

healthy members translate to a progressive cooperative.

T4e Po!i)ies on COOP &ea!t4)are Loan

. 7ember is a / 7ember $n 8ood Standing /.

2. 7ember=s share capital is + 2!;00.00 upon filing of loan.


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D. &his loan shall be treated as additional character loan- purpose of which is

medical epenses. owever! such additional character loan is applicable only for

coop healthcare enrollment.

Ba), to )4oo! Loan Pro*ra( - after the end of each school year! parents and

guardians find themselves relieved of school epenses! especially those with

children who are graduating. @ow comes the new school year! and parents would

again try to look for ways and means on how to finance the school epenses. &o

alleviate and somehow assist our members in meeting these unavoidable

ependitures! the cooperative has come up with the / (ack to School Goan

+rogram 9(SG+! under the +rovidential Goan category.

T4e Po!i)ies on Ba), to )4oo! Loan Pro*ra( 2BLP3:

. &he reason for availment should be limited to payment of tuition fees! school

miscellaneous epenses and school materials 9 school supplies! uniforms!books.

2. ) memberBborrower can avail of a back to school loan simultaneously with

different types of loans! even with no eisting loan! 9provided heBshe has previous

records! or with newly released loan! provided most recent loanBs or present

loanBs isB are updated.


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;. ) @O@-7$8S memberBborrower can also avail of (SG+ euivalent only to D0K

of the F0K of Share #apital !but not to eceed + F!200.00.

5. ) corresponding Service 'ee and Social 'und Goan +rotection shall be deducted

from (SG+.

D. Only members with +

(SG+.

>. &erm of loan is at a maimum of 0 months.

C. @o guarantor ! no collateral reuired.

0. *ue to a limitation of the automated system! the (SG+ shall be included under

)dditional ?egular Goan! purpose of which shall be termed as 4*H#)&$O@)G

GO)@ and will be considered as a special type of loan. &he (SG+ shall not be

part of the maimum loanable amount of the ?egular Goan.

. &his /(ack to School Goan +rogram is effective only '?O7 7)?# &O 7)"

)@* S4+&47(4? &O @OM47(4? of each year.

4are Capita! Loan " &he ob3ective of this loan is to encourage members to

update their share capital and to increase the capital of the cooperative.

T4e Po!i)ies an$ #/i$e!ines on 4are Capita! Loan

. ) 7ember with + ;00.00 initial deposit in hisBher share capital is ualified to

avail of share capital loan.

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2. 7ember can avail of the maimum amount of + ;!000.00 Share #apital Goan

sub3ect to the service fee! social fund loan protection and monthly interest.

. @et proceeds of a Share #apital Goan will automatically be deposited to the

member=s share capital account and only the official receipt will be released to the

member.

C. ) member with share capital loan can en3oy the ; day-grace period. owever! the

other reliefs are @O& applicable.

0. ) non- 7$8S member is only entitled to D0 K of the loanable amount for Share

#apital Goans.

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. Signature of the spouse is optional.

2. 'ailure of member to pay the share capital loan for consecutive months

9 consecutive months means ;0 K of the term of loan would result in

termination of membership! after due process. ) written undertaking will be

signed by the member upon release of the loan to show his conformity. owever!

if member has an outstanding secured loan! the policy in terminating the

membership of those with delinuent secured loans will prevail.

T'PE OF RELIEF:

A- #ra)e perio$ of five 253 $a%s - a grace period of five 9; days after the installment is

due shall be given for loans payable monthly! two 92 days for loans payable semi-

monthly and one 9 day for loans payable weekly.

B- E6tension of perio$ of pa%(ent - the repayment period of a loan may be etended

thru a written reuest of the borrower to the #redit #ommittee in order to reduce the

amount of the monthly amorti6ation.

C- Defer(ent of pa%(ent - a member-borrower may reuest for a deferment in the

payment of his loan for good reasons. owever! such deferment shall not be for more

than three 9


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E- Restr/)t/re$ !oan - a loan can be restructured if the arrears have reached the 20 K

past due.

F- Loan (oratori/( - when the member-borrower or the spouse is the ma3or source of

support of the family and a total impairment of the paying capacity occurs during the

term of the loan.

Ot4er Loans an$ ervi)es Offere$

7utual )id +lan 9+lanong *amayan

Social 'und Goan +rotection 9+lanong )buluyan

+re-SchoolB 4lementaryB igh School

#oop ealthcare +rogram

Menues for ?ent

7anpower *irectoy Services

ousing +ro3ect !2 Q <

)pplianceB +roduct 'inancing

4nterpreneurship Services

Gibrary

7ailing Q (ayad #enter Services

30

http://sandionisiocredit.coop/content/mutual-aid-plan-planong-damayanhttp://sandionisiocredit.coop/content/social-fund-loan-protection-planong-abuluyanhttp://sandionisiocredit.coop/content/pre-school-elementary-high-schoolhttp://sandionisiocredit.coop/content/coop-healthcare-programhttp://sandionisiocredit.coop/content/venues-renthttp://sandionisiocredit.coop/content/manpower-directoy-serviceshttp://sandionisiocredit.coop/content/housing-project-12-3http://sandionisiocredit.coop/content/appliance-product-financinghttp://sandionisiocredit.coop/content/enterpreneurship-serviceshttp://sandionisiocredit.coop/content/libraryhttp://sandionisiocredit.coop/content/mailing-bayad-center-serviceshttp://sandionisiocredit.coop/content/mutual-aid-plan-planong-damayanhttp://sandionisiocredit.coop/content/social-fund-loan-protection-planong-abuluyanhttp://sandionisiocredit.coop/content/pre-school-elementary-high-schoolhttp://sandionisiocredit.coop/content/coop-healthcare-programhttp://sandionisiocredit.coop/content/venues-renthttp://sandionisiocredit.coop/content/manpower-directoy-serviceshttp://sandionisiocredit.coop/content/housing-project-12-3http://sandionisiocredit.coop/content/appliance-product-financinghttp://sandionisiocredit.coop/content/enterpreneurship-serviceshttp://sandionisiocredit.coop/content/libraryhttp://sandionisiocredit.coop/content/mailing-bayad-center-services


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7edical! *ental Q Other ealth Services

#ooperative 4ducation for members! officers and leaders

#ooperative +romotion Q )ssistance to other #ooperatives Q Organi6ations

#ontinuous +ersonnel *evelopment +rogram

*rugstore

*oor-to-*oor Service 9&ie-Hp

Western Hnion 7oney &ransfer 9&ie-Hp

7ember-*entists )ccreditation

7edical B Gaboratory 4amination 9&ie-Hp

'uneral Service 9&ie-Hp

Area of Operation:

(arangay San *ionisio! San $sidro! San )ntonio! (.'.

&otal population of F barangaysR22D!0F< as of *ecember 200

. (arangay San *ionisio

2. San $sidro


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&he total number of members of San *ionisio #redit #ooperative is

200. &he number of members who are in good standing is 5! >C;. )nd the number of

@O& members is 5!2DC based on the official results of ;0th annual genera

Capita!:

As of De)e(7er 89+ ;9;

De)-89+ ;9; De)-89+ ;;< Varian)e =

A- &ARE

CAPITAL

CC.C> 7 ;5.D0 7 F 7 2D.52 K

B- AVIN#

DEPOIT

C.D< 7 2.F5 7 D.2D 7 5.F5 K

C- TIME

DEPOIT

2 K

D- TOTAL

AET

5F 7 ;F;.C5 7 >.> 7 F.32


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PECIAL

DEPOITOR

D!>5> D!D0 5D 2.D K

ADULT

DEPOITOR

>FF >;5 -2 -.F0

Assets:

As of De)e(7er ;9;

>an/ar% ;9; >an/ar% ;;< Itinaas0 I7ina7a

2Tota! Assets3+ ;0.2< 7 + ;C.; 7

24are Capita!3

;C.CF 7

.0; 7 2.>C 7

2avin*s Deposit3

.5< 7

0;.>F 7 ;.DC 7

2Ti(e Deposit3

20;.


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2Loan Co!!e)tion3

20;.


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&he ?over Scouts

&hus! such community pro3ects as artesian wells! playgrounds! basketball courts and

cleanliness of environment were reali6ed.

'r. ogan introduced the concept of #ooperatives which the group agreed with. One of

the ?over Scouts who was also a member of an institutional cooperative! introduced the

group to 'r. 8aston *uchesneau! a Lesuit priest who was then the director of the $nstitute

of the Social Order 9$SO.

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*r. )ngel 7endo6a! who was a barrio lieutenant at that time! called for an assembly to

address the needs of the community! particularly the need for organi6ing a cooperative.

)lthough many of those present agreed! there were also those who were against the

concept because most of them were already old and thus not up to the task anymore. 7r.

Laime 'errer! a strict disciplinarian! who was a leader of the unter=s ?O guerrillas in

+ara,aue and a colleague of *r. )ngel 7endo6a in #lub &amorgo! boosted the morale

of those who were interested.

&here were forty five 9F; participants who attended the seminar for nine 9C consecutive

'ridays! only twenty eight 92> of whom were able to finish it. &he speaker of the said

seminar was 'r. 8aston *uchesneau! assisted by St. )ndrew )sst. +arish +riest! 'r.

'rancis Witi6elae.

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St. )ndrewIs #hurch

)t last! San *ionisio #ooperative #redit Hnion! $nc. 9S*##H$ was organi6ed on Luly

2>! C5 by the twenty eight 92> founding members with three hundred eighty 9+

0.00 pesos as starting capital. $t was subseuently registered with the #ooperative

)dministration Office 9#)O on September >! C5.

37


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&he name San *ionisio #ooperative #redit Hnion! $nc. was named after the +atron Saint

of (gy. San *ionisio! St. *ionysius .

&he 'ounding 7embers

)t first! the #)O was reluctant to register S*##H$! because of the provision in the by-

laws about minor depositors. $t was also the first time ever that a community cooperative

was organi6ed. Gater! however! the #)O agreed.

On October F! CD< San *ionisio #ooperative #redit Hnion $nc. was re-registered with

the (ureau of )gricultural #ooperatives *evelopment 9()#O*. Gater on! the

cooperative was re-registered with the #ooperative *evelopment )uthority 9#*) under

?.). 5C and 5C


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On October 5! 200C! S*## was again registered with the #*) under ?.). C;20! also

known as the +hilippine #ooperative #ode of 200>.

$t may be worthwhile to note that with the help of the Marsitarians! a +ara,aue civic

club! the neighboring barangays of San *ionisio such as &ambo! *on 8alo! Sto.@i,o! Ga

uerta and Gas +i,as were motivated to organi6e their own cooperatives during the early

50=s.

T4e #ro?in* Pro)ess

39


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When San *ionisio #redit #ooperative 9S*## was formed! there were negative

attitudes like: “Walang humawak ng palayok na hindi naulingan ang kamay” @obody

borrows from a cooperativeE and the issue on credibility.

owever! S*## was able to overcome those problems and challenges under the

stewardship of Mr- &er(inio C- &ernan$e@in his capacity as 8eneral 7anager. $n

C5! upon the reuest of the (oard of *irectors! he started with his voluntary service for

years up to CD2. e then gave up his well-paying 3ob as an accountant in a shipping

firm to work for the cooperative as its full-time 8eneral 7anager! even with a lower

compensation.

40


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&er(inio C . Hernandez

8eneral 7anager 9C5 P 2000

The following are the factors that contributed to the slow but sure growth of San

Dionisio redit ooperati!e"

. )dherence to the #oop +hilosophy and +rinciples

2. &ransparency of the officers and management


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• C.; m South of ?i6al 7onument

• +asay on the @orth

• 7untinlupa on the Southeast

• Gas +i,as on the Southwest

• 7anila bay on the West

• &aguig on the 4ast

• 7akati on the @ortheast

• F5.;D suare kilometer the C 9as of Lan. 200

Source" #ity of +ara,aue Gocal *evelopment +lan.

42


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DCCs P&ERE OF OPERATION

• (arangay San *ionisio

• San $sidro

• San )ntonio

• (.'.

Tota! Pop/!ation of Baran*a%s 5+< (as of 2007)

Source" #ity of +ue Gocal *evelopment +lan.

43


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C4a!!en*es of an Dionisio Cre$it Cooperative

• &o reduce loan delinuency.

Some of the borrowers is late or overdue on a payment! such as income taes! a

mortgage! automobile loan or credit card account. &here are conseuences for being

delinuent! depending on the type! duration and cause of the delinuency. +eople who are

late with a credit card payment may be forced to pay a late fee. *elinuent also refers to

the failure to perform a duty or act in a manner epected of a person in a particular

profession or situation.

• @ew businesses generating income.

&o provide etra service to provide the needs of the members of San *ionisio #redit

#ooperative.

• Sustainability of all the services.

&o maintained or to improve the provided services for the members of San *ionisio

#redit #ooperative.

• Successor leadership and 7anagement

&o better promote the cooperativism in the community.

• Juality and )ctive members.

&o encourage the members to participate and promoting cooperativism in the community.

44


45/52

• 7ore +ook- &ulungan Geaders are actively participating to cooperative programs.

&o have a large number of community that they can help. )nd to promote the cooperative

in the community.

• +ook-&ulungan System as a vehicle to a more successful cooperative.

+ook-&ulungan System is one of the programs of S*##. &he purpose of this program is

to help the depress areas. )nd to promote the cooperative in the community.

45


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Fa)tors Be4in$ a Cooperatives /))ess

&his shows how San *ionisio #redit #ooperative become one of the successful

cooperative in the +hilippines nowadays.

&he #ooperative is Gike a +ot

46


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. 4nlightened Geadership

2. 8ood 7anagement


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5. #oncern for Staff *evelopment

D. 8oing the 4tra 7ile

>. +racticing the < 'Is: 'riendly! 'air! 'irm

Me(7ers A)tive Parti)ipation

. )ttend 7eetings

2. #ritici6e #onstructively


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I(pa)t to Co((/nit%

+olicy makers and community developers are increasingly interested in alternative

models for local businesses that will be both responsive to community needs as well as

stimulate local economic growth. &he cooperative form of business should be an obvious

choice. #ooperatives have the potential to foster economic growth at the community and

regional level! building on the spirit of cooperation that is already prevalent in rural areas.

With local ownership and control! and net profits distributed to those who use the

cooperative! cooperatives are considered by some to be an ideal model for local economic

development. &he structure and ob3ectives of cooperatives compel them to behave

differently in their communities than businesses with other organi6ational structures. $n

addition! cooperatives offer a way for a group of individuals to pool their limited

resources to achieve a critical mass. #ooperatives combine people! resources! and capital

into larger! more viable and economically competitive units. )s direct federal assistance

for rural development declines! the potential for locally owned cooperatives to play a

49


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more vital and direct role in rural economic development increases. &his potential was

recogni6ed in San *ionisio #redit #ooperative! which authori6ed substantial financial

allocations for a rural cooperative development program. #ooperative developers have

also acknowledged this potential and nowadays. &hey adopted the following principle for

their profession: #ooperatives are development tools and should promote both social

empowerment and economic goals. $ recommend to promote the cooperatives in the

community.

Persona! Ref!e)tion an$ Learnin*:

$ reali6ed that cooperative can be the tool to fight the poverty. &hat we have in our

country. (uy promoting the cooperative in our country. $ believe it can help to fight the

poverty. 8iving some training and seminars to the people or some official to the

community. (ecause of what i saw and read about San *ionisio #redit #ooperative one

of the success cooperative in our country. &hey are promoting cooperativsm in their

community efficiently. We can use them as inspiration to develop our community and

giving a good life. $f we can help each other in promoting cooperativism. We can achieve

a better community and a better life.

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Bi7!io*rap4%:

)charya! (.7. 9200D. ?ural )gricultural #ooperative Societies in @epal: +erformance

and 7ember +articipation.Hnpublished +h.*. thesis of management! &.H. irtipur!

athmandu! @epal.

(richall L 200


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