Posted on July 25, 2013 by Stephen Mwangi
After years of searching, the seeker was told to go to a cave, in which he would find a well. ‘Ask the well what is truth’, he was advised, ‘and the well will reveal it to you’. Having found the well, the seeker asked that most fundamental question. And from the depths came the answer, ‘Go to the village crossroad: there you shall find what you are seeking’.
Full of hope and anticipation the man ran to the crossroad to find only three rather uninteresting shops. One shop was selling pieces of metal, another sold wood, and thin wires were for sale in the third. Nothing and no one there seemed to have much to do with the revelation of truth.
Disappointed, the seeker returned to the well to demand an explanation, but he was told only, ‘You will understand in the future.’ When the man protested, all he got in return were the echoes of his own shouts. Indignant for having been made a fool of – or so he thought at the time – the seeker continued his wanderings in search of truth. As years went by, the memory of his experience at the well gradually faded until one night, while he was walking in the moonlight, the sound of sitar music caught his attention. It was wonderful music and it was played with great mastery and inspiration.
Profoundly moved, the truth seeker felt drawn towards the player. He looked at the fingers dancing over the strings. He became aware of the sitar itself. And then suddenly he exploded in a cry of joyous recognition: the sitar was made out of wires and pieces of metal and wood just like those he had once seen in the three stores and had thought it to be without any particular significance.
At last he understood the message of the well: we have already been given everything we need: our task is to assemble and use it in the appropriate way. Nothing is meaningful so long as we perceive only separate fragments. But as soon as the fragments come together into a synthesis, a new entity emerges, whose nature we could not have foreseen by considering the fragments alone.
Filed under: Co-operative Inspiration Stories | Tagged: Arts, DVD, History, Music, Philosophy of Logic, Religion and Spirituality, Sitar, Stringed | Leave a Comment »
Posted on July 25, 2013 by Stephen Mwangi
- Liquidity/cash flow problems
- Loan backlog
- Delayed refunds of members deposits
- Competition between Saccos
- Competition from banks and micro finance institutions
- Short visa-vis long term lending
- Poor member loyalty
USE OF CREDIT POLICY AS A TOOL OF FINANCIAL MANAGEMENT
- Developed to serve as a guide to the action or decision making process in the credit section of the Sacco.
- Provides procedures and guidelines on handling or management of all Sacco loans
- Addresses loan processing, approval, disbursement, administration, monitoring and delinquency
- Formulated as a separate document or form part of the By-laws
- Formulated by the management committee for approval and adoption by the general meeting
2. Purpose of the credit policy
- Ensure that the society does not get into financial difficulties by approving loans to members in access of fluids available
- Facilitates efficient and effective loans processing, approval and recoveries
- Ensure fairness in loan granting
- Minimize loan defaulting
- Improve society liquid position
3. Control Objectives
The control objectives of the credit policy is to ensure that:-
- Loans are granted to bonafide members only
- Loans are properly appraised and approved
- Loans are properly guaranteed and approved
- Loans disbursement are done as per the approved terms and conditions
- Proper records of loans are maintained
- There is effective monitoring and control
- Delinquent loans are detected for action
4. Administration of Credit Policy
The credit policy is normally administered by the credit committee on behalf of the management committee.
The credit committee may delegate defined authority and functions in writing to an employee or elected official of the society to facilitate the efficient processing of loans.
5. Features of the Credit Policy
The main features of the credit policy include:-
- Lending requirements-period of active membership, minimum deposits, waiting period after clearance of loans before maturity, waiting period after boosting of deposits
- Types of loans and products-development, education/school fees, emergency, instant, express, okoa jahazi
- Loan entitlement
- Loan limits
- Repayment periods for loans
- Cash reserves (15%)
Lasting Liquidity Improvement Options
- Increase minimum contribution across the board
- Introduce special saving schemes e.g. Save As You Earn (SAYE), cluster method, Save As You Borrow (SAYB), saving scheme, holiday saving scheme, withdrawable saving account
- Non withdrawal deposits
- Withdrawal and rejoining conditions
Hard Liquidity Improvement Options
- Increase membership incubation period
- Reduce multiplier
- Reduce repayment period
- Fix limits for loans
- Adhere to rules for boosting of deposits
- Adhere to rules for pre-mature loan clearance
Filed under: Funds Mobilization In Saccos | Tagged: Business, Credit, Credit union, Deposit account, Finance, Financial Services, Loan, SAYE | 3 Comments »