Loan Management System

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Chapter I
Project Initiative : Loan Management System
Cooperatives are obligated to adhere to the Republic Act No. 9520 or the Philippine Cooperative Code of 2008. The law was signed into law last February 17, 2009. The new law amending RA 6938 was passed to meet the challenges of the global economic situation and the advent of the age of information technology. Moreover, the new cooperative code is expected to strengthen the thousands of cooperatives in the country and enable the system to contribute better to the country’s economic growth. It is the declared policy of the State to foster the creation and growth of cooperatives as a practical vehicle for promoting self-reliance and harnessing people power towards the attainment of economic development and social justice. The State shall encourage the private sector to undertake the actual formation and organization of cooperatives and shall create an atmosphere that is conducive to the growth and development of these cooperatives. "Toward this end, the Government and all its branches, subdivisions, instrumentalities and agencies shall ensure the provision of technical guidance, financial assistance and other services to enable said cooperatives to develop into viable and responsive economic enterprises and thereby bring about a strong cooperative movement that is free from any conditions that might infringe upon the autonomy or organizational integrity of cooperatives. "Further, the State recognizes the principle of subsidiarity under which the cooperative sector will initiate and regulate within its own ranks the promotion and organization, training and reserach, audit and support services relative to cooperatives with government assistance where necessary.

General Concept
A Cooperative is a business owned and independently controlled by a group of persons with a common bond of interest who have willingly joined together to achieve a lawful social and economic end. These persons made a just contribution to the capital required and accepted fair share of the risks and benefits of the undertaking in accordance with generally accepted cooperative policies (Philippine Cooperative Code, 2008). Objective and Goals of a Cooperative

Helping to improve the quality of life of its members is the primary objective of every Cooperative. These are by means of providing goods and services that will enable the members to increase income, savings, investment, productivity and purchasing power, and promote an equitable distribution of net surplus among themselves through maximum utilization of economies of scale, cost-sharing and risk-sharing; Moreover, through providing optimum social and economic benefits to its members; Another, by way of educating the members’ efficient ways of doing things in a cooperative manner; Furthermore, through propagating cooperative practices and new ideas in business and management; Additionally, by means of allowing low income earner and less privileges groups to improve their ownership in the wealth of the nation; Lastly, by cooperating to the government and people-oriented organizations to further the attainment of any of the foregoing objectives. Cooperative Principles

Every cooperative conducts its affairs in accordance with Filipino culture, good values and experience and the universally accepted principles of cooperation which include, but are not limited to, the following: "(1) Voluntary and Open Membership - Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, cultural, political or religious discrimination. "(2) Democrative Member Control - Cooperatives are democratic organizations that are controlled by their members who actively participate in setting their policies and making decisions. Men and women serving as elected representatives, directors...
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