CCT Co-op Offers Multi-purpose Loans to CCSC Members

The management committee at a garments factory in Dasmarinas, Cavite study a portion of the Scriptures
at the beginning of a regular meeting.  Leading the Bible study is Pastor Fortunato Bayucan of the Covenant
Community Service Cooperative. 

Members of the Covenant Community Service Cooperative (CCSC) may now receive loans from the CCT Savings and Credit Cooperative (CCT Co-op) following the signing of  a memorandum of agreement between the two cooperatives.  

According to Froi Parado, CCSC general manager, the loans are being offered to arrest the problem of CCSC members borrowing from usurious moneylenders and being caught in a debt trap.  Informal moneylenders are known to charge as much as 20% interest on loans to workers who are driven to borrow in situations such as medical emergencies or to pay their children's college fees.

The loan may be three times the amount of the CCSC member’s capital build-up with an interest of 1.5 per month for a loan term of up to six months.  Collection will be done by salary deduction. 

CCSC, which has a membership of 4,200, is apparel subcontractor for two garments factories in Cavite. Both CCSC and the CCT Co-op are members of the Center for Community Transformation Group of Ministries.