An Analysis of the Credit Delivery Services on Credit Cooperatives: A Case Study of St. Joseph Credit Cooperative, Inc. in San Miguel, Bulacan

Abstract

This study seeks to determine the role of the credit cooperative in the socioeconomic development of the people by analyzing its provision of loans. The study concentrated on the amount of loans granted and on the types of loans granted. The study covered the period from 1995 to 1997. Survey was done in order to determine the people’s perception of the credit cooperative as a whole. This study focused on the credit cooperative of San Miguel , Bulacan - the St. Joseph Credit Cooperative, Inc., this cooperative was chosen because it is the largest and most established cooperative in the said community. Majority of the members of the cooperative are small-scale businessmen and women usually sari-sari store owners, although there are also a number of middle class members. Analysis of the loans granted in the period of three years yielded the trend that the highest amount of loans given were for regular loans which are usually used for capital. The amount of these loans have been growing in the past three years. While data gathered from respondents show that the most valued loans were educational and emergency loans. Moreover, loans were significant catalysts for improving the income generated by the members because they are able to augment the inadequacies of their income especially during emergency situations or in situations when big amounts of money are readily needed, e.g. , for tuition fees. This study concludes that the credit cooperative is a viable financial institution that promotes the socio-economic development of the people by virtue of the loans granted which can be used for productive and provident at a low cost of money for the borrower. In line with this, the researcher gave recommendations for promoting the expansion and progress of the cooperative.