TOPIC: Personal Credit

The Role of Credit Cooperatives

To the poor, the need for adequate money to meet just the most basic human wants has always been a big problem. In view of the increasing population and inflation, the financial problems of the poor have taken a more serious proportion. Despite the presence of banking institutions, many poor people still depend for their credit problems on the notorious loan sharks in their communities. They exist in all places such as in the markets near government offices and factories, and other areas where many poor people reside. Since the poor are not qualified to borrow money from the banks, they have no resources except to be exploited by the usurers. Such dismal situation only deepens the miseries of the poor.

The financial problems of the poor, however, can be reduced if they are taught on how to allocate properly their scarce financial resources for their basic needs. In addition, if they can learn better savings habit and the productive use of their money, their dependence on loan sharks will be minimized or more likely to be wiped out. These have been the fundamental responsibilities of credit cooperatives toward the poor. They help the poor people in helping themselves through thrift and credit.

QUESTIONS - ANSWER WITH NO PLAGIAR. It should be at least 15O wor-ds each question.

1. How does credit affects the economic and social life of poor individuals?
2. Does the role of credit cooperatives help the poor individuals? Why?