Credit Unions
Community credit
aribbean People are no strangers to the concept of pooling monetary resources for the benefit of all. Take a “Susu” for example. An informal way of saving and loaning money that remains prevalent in villages and communities throughout the West Indies and parts of Africa. It is a means in which a poor man can raise money using the help of their friends. The concept is simple. Lets say ten people come together (“The Hands”) and decide to save a $100 a week each for the next 10 weeks. After the first week, the person in control of the Susu, “The Head”, usually a respected and trusted soul from the community, has collected $1000 now available to the first “Hand” to “Draw their hand” (collect) from the “Susu” The system allows that person access to $1000 that would take them normally ten weeks to save for, but by only putting down an initial $100. Everybody continues to save at $100 per week so that a different “Hand” can draw their $1000 every week. At the end of the ten weeks, everyone has “drawn their hand” and the process can start all over again. A small amount is taken out by “The Head” for handling (interest) but essentially everyone received close to a thousand dollars back. A line of credit is born But Hey “What if I’m not the first Hand? and I have to wait 10 weeks for my money?” I hear you say...well apart from saving a $1,000 in a manageable way, ...That’s a different story.
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Business Grenada takes a look inside 3 of the largest Credit Unions operating in Grenada today
Taking community credit to a whole new level, whilst maintaining traditional ethos. The modern day Credit Union in Grenada, is a rising tide for increasing amounts of members, who save together, live together and equitably share profits, after
expenses... together. A moral and ethical financial institution that makes full use of the leveraging of social capital, in an era littered with ponzi schemes and questionable institutional financial practices...Credit Unions offer a breathe of fresh air indeed!
www.businessgrenada.com
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