Employee Credit Cooperative Society
Employee Credit Cooperative Society is a staff welfare society that is created in most Government organizations, and public, and private organizations. Employee credit cooperative societies, as the name suggests, accept membership of only the employees of that organization. They can be the shareholders of that company. It is owned by the members. Each member has one voting share.
The basic procedures for the co-op are laid down in the company’s articles of
incorporation and bylaws.Once an employee credit cooperative society is setup, the members deposit money by way of Saving Account, Recurring or Fixed Deposits. This shared fund is available to members who want to take loan from the society. Since the aim of the society is not directed towards profit-making, the rates of interest on these loans is very nominal. The societies are usually connected to the Accounts Department of the parent company. The loan repayment schedule is an employee is shared with this department and the amount due is deducted from the salary. The recovery percentage of these loans is hence, almost always a total recovery.
Cooperatives are based on the values of self-help, self-responsibility, mutual aid, democracy, equality, equity, and solidarity. These principles are upheld while creating and running a sustainable Employee Credit Cooperative Society. There are many ways that an organization can undertake to promote the economic interest of its members. They can grant loan, provide assistance and concessions from internal and external sources.
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Employee Credit Cooperative Society Software Features
Short Term Loans
The society will provide a short term loan to a pre-defined limit. THese loans can be procured for children’s education, immediate cash requirement, medical emergencies.The repayment and interest rate on these loans is defined in the by-laws of the society.
Long Term Loans
These loans are available to employees with long repayment periods. There may be a pre condition, that the employee has to authorize deduction from his gratuity/pension. The sanctioned limit will depend on the salary class of that employee.
Medical Assisstance and Medical Reimbursements
A seperate Medical Fund can be set up to meet the recurring medical expenses of the members. The fund can be used to treat diseases, accidents or ailments which need hospice care.
Education, Training, and Information
Employee Credit Cooperative Societies provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. Mutual Benefit funds may be set up by contributing members. The members are responsible arrears, if any, and make sure the unpaid amounts are recovered.
Concern for Community
Cooperatives work for the sustainable development of their communities through policies approved by their members. An Employee Credit Cooperative Society makes sure that the employees of an organization are cared for and that there is constant development and growth of wach of its members.
Benefits of an Employee Credit Cooperative Society
The benefits of an Employee Cooperative Society are manifold. They can offer upskill training, provide a platform for participation in management, shared equity, unbiased monitoring and shared costs. This helps to generate a cohesive environment for employees where they can enhance communication and performance.
How does SNS System Private Limited help?
SNS System Private Limited has created a software to record the transactions of an Employee Credit Cooperative Society. The software menu allows you to track the Loans, Members, the Business Rules, Accounting and Reporting of any Cooperative society. Please call us at 932-942-2917 and schedule a demo now.
