Theory question 105
Co-operative SocietiesCommerce 2 (answer five questions)
(a) What are Thrift Societies?
(b) Describe five services rendered by Thrift Societies to their members.
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(a) Thrift (credit and thrift/savings) societies are voluntary associations of people, usually with a common bond (same workplace, trade or community), who save money regularly into a common fund from which members can borrow at low interest (e.g. esusu, ajo, co-operative thrift and credit societies).
(b) Services (five): encourage regular saving; give loans to members at low interest without strict collateral; help members buy goods (e.g. household items, land) in bulk or on credit; pay dividends/interest on savings; safe keeping of members' money; financial advice and education; help in emergencies (welfare); serve as guarantors for members' bank loans.
Define first, then describe five services.