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Saturday, 15 October 2016

Why you should join or not join traditional financial institutions firegain.com

Why you should join or not join traditional financial institutions Traditional financial institutions: is originated long before the establishment of modern banking system still exist in many parts of west Africa. they take the form of associations of people in the same place of work who mutually agree to come together in order to encourage one another to save, lend and manage money. these financial institutions which
take the form of cooperative societies called the ''credit and thrift cooperative society'' are given different names in different places. in these financial
institutions, members are encouraged to save their money together which all or part of it may be lent to any member that is in need. in some of these institutions, members collect their total savings weekly or monthly in a rotatory form. in part or all the money collected is given to a member in form of loan, the interest chargeable on the loan is very low, if any at all.


why you should join traditional financial institutions

  1. these traditional financial institutions encourage their members to form the habit of saving money.
  2. they encourage their members to invest the big sum of money they have saved
  3. they lend money to their members
  4. they save their members the pain of going to banks to borrow money with their embarrassing collateral securities.
  5. they inculcate the principles of democracy in their members
  6. they discourage their members from being extravagant in their spending so that they can save money

Why you should not join traditional financial institutions

  1. these traditional financial institutions experience high embezzlement rates
  2. they have week management because they are managed by those who lack administrative and managerial acumen.
  3. the institutions lack effective means of recovering loan granted to their members if they default in re-payment.
  4. they have low financial resources at their disposal as a result of inability of some of their members to make their contributions.
  5. they use arbitrary means in fixing interest on loans

CONCLUSION

I you have finished reading this post, men it is your choice to make , but my advice is if you should join make sure the financial institution you are joining has high reputation and a certain level of trust in other not to lose you cool cash.

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