Credit unions have been existing organizations for more than a century. In Brazil, they are better known in the South region, due to the colonization of this area of the country. The German, Dutch, Italian and Polish immigrants have already brought the practice of cooperativism in the baggage and implemented in our country.
This type of organization is able to provide everything a company or individual needs to manage their finances. Working capital, payroll, consortiums, loan, secured account and more.
The elimination of bureaucracy and the possibility of giving active voice to the cooperative are some of the points that highlight the importance of credit cooperatives for the current market.
Interested in the subject? So, continue reading this article and understand the importance of credit unions for the growth of the market .
A credit union is a financial institution constituted by the association of persons with the purpose of providing exclusive financial services to its members . It can even be said that they are owners and users of the organization , being an integral part of the management and using their products and services.
It is possible to say that users find in the cooperatives the main services provided by banks : opening of current account, credit card, loans, financing and financial investments.
The main difference is that cooperatives are non-profit financial institutions . All profits obtained , which are known as “leftovers”, are distributed among the cooperative , in proportion to the number of operations performed by each one. Obviously, in case of damages, these will also be distributed among the members.
It is worth mentioning that the members of the cooperative can participate in the meetings and assemblies , having voting power regardless of their share of the share capital. Fantastic, is not it?
Finally, it is interesting to note that credit unions are supervised by the Central Bank, unlike other subdivisions of cooperativism , such as transportation and education.
The functioning of credit unions is similar to the operation of a commercial bank. However, there are some considerable differences. See what they are next.
Credit unions are somewhat democratic. All members are considered owners and the Board of Directors is formed by members elected at a General Assembly. Each member has his vote , the same weight as the others.
Another important difference is that cooperatives seek to develop where they are. The development of the region is one of the aspects that highlight the importance of credit cooperatives .
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Easy access to credit is another characteristic of this type of organization. Interest rates charged are lower than those charged by commercial banks. In addition, the process is less bureaucratic and time consuming , becoming more efficient.
As previously pointed out, cooperatives provide the same services as banking institutions, becoming an interesting alternative to traders. Services such as loans, checking account, credit card, issue of checkbooks and so many others can be carried out in simpler ways.
Suppose you are wanting to expand your business by increasing the production of your business. Unfortunately, you are finding it difficult to get an individual loan from a bank.
An interesting alternative to remedy this problem is to use credit unions. Thus, it will be possible to reduce the process bureaucracy and obtain the necessary financial resources .
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The entrepreneur will have lower interest rates and, with the possibility of saving on the purchase of inputs , it becomes possible to negotiate a larger quantity of items, due to the participation of all the members .
The main advantage of having a credit union is that the members are owners who can take part in the meetings with an active voice, asserting their ideas and opinions. However, there are other advantages from a personal and financial point of view .
Cooperatives offer lower interest rates, and you can find some that do not charge for some services (issuing checkbooks, making transfers and registrations, among others). Those who charge for these services, apply prices lower than those charged by banks.
The service is also worth mentioning, since the cooperative is seen as an owner and not a simple client . In addition, it will conduct business in an organization that will return interest and fees paid more than due, due to the apportionment of the leftovers. It can be said that the payment can be made by means of money or the acquisition of more quotas, depending on the decision of the Assembly.
One of the most important advantages is income, higher than the market . The cooperative may apply its financial reserve to the cooperative in the form of a time deposit. Yields are generally higher than those in the financial market.
Moreover, the cooperative is exempt from taxes and is not required to collect compulsory deposit taxes, increasing the rate of return to its members.
We must remember that customers of commercial banks have their investments and their money guaranteed by the FGC (Credit Guarantee Fund). The purpose of this fund is to protect account holders, investors, savers and other types of customers from bank failures. Thus, a maximum amount of R $ 250,000.00 is guaranteed .
Obviously, with credit unions it would not be any different. The FFCoop (Guarantee Fund Credit Union) ensures the same value of R $ 250,000.00, all individual and legal entity who is a member of a cooperative.
It is safe to say that this type of organization is an interesting alternative to market growth , especially for the possibility of local development and the elimination of bureaucracy in loans, financing and other services. These are the main points that highlight the importance of credit unions .
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