The main motto of Koperasi Loan is to help people. Pinjaman Koperasi is formed to help a group of people forming a cooperative society. The govt. consider cooperative group itself as a different entity and give it some concession because it helps a group of people all together. So there are many reasons to opt for Pinjaman Koperasi.
Top 3 reasons that would explicitly make it clear the reason
- Processing time: A person always searches for loan in case of emergency. So, more is the processing time more is the problem. Most of the commercial banks need a lot of time to process a loan as they go through a lot of paper work and checking. Cooperatives provide the loan to govt. job holders mainly and only check the salary accounts. They check if there is any history of bad debt. CCRIS and CTOS are the main things that are checked for. They check if the applicant already has in loan and if he or she has any, status of the loan is also checked. The other thing is, if the total deduction from the salary is more than the remaining, there is a big question mark from the cooperative’s side to allow the loan or not.
- Period of loan and the interest rate: As I have mentioned in the beginning that govt provide some concession on the interest rate, one get loan in much low rate than the other one having loan from commercial banks. Also the applicant get more time if he or she avail loan from the cooperatives because the period of repayment is more than commercial banks. Commercial banks give personal loan for a period of 5 to 7 years whereas the same is give by cooperative for the period of 1 to 10 years.
- Consolation for one with good debt history: This is one of the most exciting things provided by the cooperatives. While checking thoroughly the bank account details the loan providing organisation’s personnel get a clear idea about your debt history and if you are good with your debit and credit with no CTOS or CCRIS record, a special consideration is offered. If an applicant have already some pending outstanding credit he or she has to take the loan at the interest rate of 15% to 18% per annum in a commercial bank whereas the cooperative consider the situation and give loan at a rate of 4.88% per annum.