Koperasi means co-operative. When a group of people come together to make a cooperative society, the govt. help the society as the society as a different entity help all the people in it. So, Pinjaman Koperasi is a good option for people who are in need of money. But, the fact is these kinds of loans are only offered to govt. holders and a selected private sector employee where the company in which the applier in working comes in a particular selected group of the govt.
Main features of the Pinjaman Koperasi and how it differs from the normal commercial loan
- Type of applicant: At the very beginning, I made it clear that only govt. holders such as civil workers, municipality worker can apply for the loan. Also govt. linked company commonly known as GLC Company workers can apply.
But in commercial bank, no such discrimination is done. Anybody and everybody can apply depending on the factor that whether he or can repay the money or not.
- Interest rate: Other than applicant’s type, it was also clearly mentioned that since co-operative is all about helping a group, so here the govt. gives concession on the rate of interest.
Commercial banks provide no such concession and the interest rate is normally higher than cooperative organisations.
- Method of repayment: This is another major point. Since all the govt. job holder are applicant as well as customer for this kind of loan, so a direct deduction from salary account is the feasible way to get repay and it is the only way how the cooperative organisation works.
In commercial banks there are many options such as auto-debit, monthly cash back by the customer himself or herself. Some banks also offer to deduct money monthly from salary account.
- Period of loan: In cooperative the period is 1 to 10 years whereas in commercial bank it oscillates between 5 to 7 years.
- History of credit: Since the cooperatives directly deduct money from the salary account they go through the applicant’s salary account thoroughly and check all the past record and stability of the account. If any kind of misbalance is notices, it gets hard to get a loan. CTOS and CCRIS records are the main things that are checked for.
Processing time: The processing time in the cooperative loan is faster than commercial banks.