The first credit cooperatives began to be created in Russia at the end of the 19th century. But after 1917 they were completely eliminated. Their revival began at the end of XX, and rapid development - at the beginning of the XXI century after the adoption of relevant laws.
Credit consumer cooperatives are communities of entities that combine their efforts and resources to help each other in obtaining a loan on certain conditions. Members of the cooperative can be both individuals and legal entities.
Documents governing the work of cooperatives
Almost all consumer cooperatives in Russia are guided by the Federal Law of June 18, 2009 No. 190 “On Credit Cooperation”.
For agricultural cooperatives, another law is written: “On Agricultural Cooperation” dated 12/08/95. As can be seen from this information, agricultural cooperatives received legal status much earlier.
Who can be a member of a cooperative
In order to create a credit (non-agricultural purpose) cooperative, certain conditions must be observed.
- When creating such a community, individuals need to have at least fifteen, and each of them must be 16 years old.
- Legal entities create a cooperative if their number is five or more.
- Mixed cooperatives are created, which consist of individuals and legal entities. Participants in them should be at least seven.
- After the cooperative is created and registered, the number of members should not be less than the prescribed number. If this happens, the organization is liquidated.
The main objective of the cooperative
This cooperative is not created in order to make a profit. These organizations are formed to provide financial assistance to their members. They are not commercial organizations.
Cooperatives are created by participants, which can be divided into two groups. Some have "extra" money, while others need it.
Having received the required amount, they invest it in their business, and those who allocate money receive interest. This is their benefit from participation. Typically, the interest in this case is higher than from deposits in banks.
Sources of funds
- Units of its members.
- Income from loans issued by a consumer credit cooperative.
- Capital raised from other sources.
- There is also the item “other sources”, which includes funds not prohibited by law.
Contributions
- Membership - designed to ensure the continued activities of the organization. Their number is regulated by the charter.
- Introductory (if they are written in the charter). Usually they go to the opening, paperwork.
- Additional ones are needed when appropriate circumstances arise, for example, repayment of losses.
- Mutual contributions - money transferred to a cooperative for conducting activities and generating income. They are binding and voluntary.
Funds created from contributions
- The funds of the financial assistance fund go to interest to shareholders.
- The cooperative acts constantly on money from a mutual fund.
- For emergency needs accumulate a reserve fund. He goes to cover losses.
The fact that the members of the cooperative are familiar with each other and are connected by common activities does not mean that they will return the money received on time. Therefore, loan agreements are concluded between them and the cooperative. A security, guarantee or other guarantee may be used.
Where does the cooperative money go
They can be used for purposes other than lending, if this is provided for by the charter of the cooperative.But their number should not exceed half of all funds received during this time.
Revenues are distributed among all members according to their units.
- Paid at the end of the year.
- They are added to existing shares.
Risk insurance
What can be done so that society does not lose its money?
Risks are minimized through legislation.
- Loans cannot be issued to someone who is not a shareholder. An exception is the giving of a loan to a higher cooperative.
- The cooperative does not act as a guarantor of any persons under a loan agreement, including its members.
- Two years after its creation, a savings credit consumer cooperative can issue up to 20 percent of the total amount of money issued at that moment to one member. After two years of activity, this amount drops to 10%. This contributes to the fact that alone no one can use the entire amount.
- In order for the cooperative not to lose money by investing it in a dubious business, it is forbidden to engage in entrepreneurial activity, both in the production of goods and in trade. In order to more reliably protect the cooperative from debt collection, sometimes they create indivisible funds, which may include part of the existing property, but the units and interest received on them cannot.
- A cooperative must be part of one of the SROs (self-regulatory organizations). She checks the activities of all its member cooperatives and has an insurance fund from their contributions.
- The authorized capital provides for death, loss of money.
- The consumer credit cooperative provides loans in agreement with all participants.
- Supervises the activities of the Financial Markets Service.
Why is a credit cooperative better than a bank
Credit consumer cooperatives are microfinance organizations. They can help part of a small business in any region, give the opportunity to get the right amount to those business representatives who do not want for any reason to get a loan from the bank. Sometimes they are not satisfied with the timing of receipt, sometimes - interest.
Some people simply cannot get a loan from a bank for any reason. They do not have a good credit history; they cannot confirm their income. This is true for young people with new projects.
Not everywhere there are banks in which you can take a loan, trust your money. In this case, a credit consumer cooperative of citizens will help one to take money, and the other to invest it.
Many see participation in cooperatives as direct investment of small amounts. By lending money to a person who is engaged in a certain type of business, the investor receives income from it, without creating an enterprise.
In many countries, credit consumer cooperatives are very popular among the population.
Profitability from 14 to 18 percent.
The risks
The main risk is that the usual financial pyramid is often hidden under a credit cooperative. Its creators take money from gullible people and soon disappear with them.
To distinguish them, you need:
- Carefully study the documents of this organization. If you are refused to show them, it is worth considering.
- Active advertising of activity indicates that the real goal of the organization is not to provide loans to its members.
- If they offer from 10% per annum.
- Do not give to study the loan agreement.
- If they offer benefits after you find other people.
Rural cooperatives
Agricultural credit consumer cooperative (SKPK) in addition to money in the authorized capital contains property shares.
In addition to the main participants, there are associates.
SKPK resources include shares, loans of all members, profits and interest. You can attract loans from banks and funds from the budget.
- Up to 250 thousand rubles are allocated for the formation of the material and technical base. for 5 years. To get you need a business plan.
- Long-term loans are granted for 5 years, short-term - for 2 years.
So, in December 2015, a provisional administration was introduced in the credit consumer cooperative “Family Capital”. This happened in connection with the failure to fulfill the obligation to pay on time, according to the Federal Law on Bankruptcy. But the reviews, written as early as March of this year, suggest that this is a reliable credit consumer cooperative. Testimonials from real people say that the heads of all employees working in stores were registered by shareholders and paid out salaries as interest. This was done in order to evade taxes. As a result, people were fired without paying salaries, that is, “interest”. They were left without a salary and do not hope to receive it.
findings
Credit consumer cooperatives should not be competitors to banks, but should cooperate with them. They can take loans from banks and bring them to the market. But credit consumer cooperatives should be more attractive. The conditions in them should be softer for the consumer who does not take a loan from the bank.
Successful cooperatives in many countries have not only made it possible to obtain a loan without strict requirements. They gave loans to that part of society, which banks could not give it.
In Russia, the legislation in this area is not regulated. Credit consumer cooperatives have gained some advantages over banks. Some analysts believe that sometimes they can completely enter the sphere of activity of banks, and, without clear restrictions, create various pyramids. This does not happen with banks due to the fact that regulation there is much tougher.
