Cooperatives have always been helping towns and communities for the past ten or twenty years—perhaps even more. These small organizations usually comprise of the members of towns, districts, and nearby locales. Typically, cooperatives aim to improve the lives of their members and they are also trying their best to lower down the prices of common goods. Now, cooperatives are even issuing different kinds of loans.
If you’re eager to apply for a cooperative-issued loan, you need to determine first if they are really worth your time.
Compared to banks and other financial institutions, cooperatives probably have easier application processes. Some cooperatives only require your identification and income statement. Others will require that you live within their operational district. This quick handling time can be an advantage for you, especially if you need the money as soon as possible.
Release of Loan
While the application process is easier, some cooperatives have issues regarding the time of their loan release. Usually, it will take one or two weeks before your money is released through a check. One of the reasons for this longer time period is that cooperatives don’t have large pools of money. Its members and administrators need to do several activities to find the ample money and release your loan. Also, if the cooperative has more than one hundred members, then expect that your loan will be released within a span of weeks.
Cooperatives are strictly regulated nowadays since there were some fraud groups that stole the financial information of loan borrowers. Despite such regulation, you need to be responsible enough in approaching the cooperative. To keep things, you can do your own research. Gather the top five reputable cooperatives near your area and makes sure that you consider the opinions and reviews of other people as well. This will give you an objective stance in the research.
Cooperatives can be worth your time, but you need a deeper search. You can put a cooperative as an alternative loan provider. Banks should top your list because they have concrete processes and your loan application might be approved quickly.