ANCHOR COOPERATIVE SOCIETY
Ideal Documentation
The initial proposed name of the Cooperative at the time of the idea was “Development Finance Cooperative Society Limited 18th June 2018”. However, it took over a year for Anchor Cooperative Society LTD to be birthed after the refusal of the Registrar to accept the initial proposed name..
My Story
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It shall run like a modified micro-finance simple system.
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It shall have members with equity holdings who shall be the foundation members and officials of the cooperative.
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Other form of membership shall be financial members i.e. those who have savings in the cooperative society but no equity holding.
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It shall focus on the poor and unbanked group of the society whom the commercial banks are reluctant to extend credit facility in the ordinary course of business.
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It is a means of encouraging compulsory savings which hitherto the person would not ordinarily do.
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It shall provide seed capital for entrepreneurs’ micro-businesses.
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It shall explore micro-financing without assets collaterization but shall adopt human and moral cooperation guarantee system. This means one person who has savings in the cooperative taking loan shall provide two other persons who have savings in the cooperative as guarantors. A lien shall be placed on the savings of the other two guarantors. The person taking loan shall sign a savings forfeiture legal document which shall be activated in event of default. Same shall apply to the two guarantors, who shall sign savings forfeiture legal document in the event that the person guaranteed default in repayment.
