Alexandoy
VIP Contributor
This type of savings and loan is an informal undertaking like a club of savers in a particular office. All the members will deposit a certain amount every payday or twice a month to the elected treasurer. The funds will be lent to qualified borrowers which are primarily the members. The interest rate is minimal but with a service charge. The manager and auditor are also elected to oversee the operation.
At the end of the year, the deposited money is returned to the member with the dividend earned from the interest on loans. Usually the earnings is 15% to 20% of the capital which is moderate. But the best benefit is the forced savings. Usually the employee member would buy an appliance upon the receipt of the fund distribution.
At the end of the year, the deposited money is returned to the member with the dividend earned from the interest on loans. Usually the earnings is 15% to 20% of the capital which is moderate. But the best benefit is the forced savings. Usually the employee member would buy an appliance upon the receipt of the fund distribution.