People, who did not know the advantages of Credit Union usually underestimate the existence of the Credit Union. There are also thought that the Credit Union is same as daily cooperative, moneylenders, and other financial institutional Non-Bank which wanted the personal gain.
Based on Picu Magazine, in 2013 end 31 December 2013, there were 921 Unit of Credit Union. Meanwhile, the number of cooperatives in Indonesia, source from Ministry of Cooperatives and SMEs , “Data recapitulation based on Province, June 30 2014” the total number is 206.288, consists of 144.839 active cooperatives and 61.449 non-active cooperatives.
Generally, Credit Union is a part of Cooperatives. Credit Union belongs to the type of cooperatives based on the types of the business, they are credit Cooperative, Multipurpose cooperatives, consumer cooperatives, and producer cooperatives. Credit Cooperative is a part of financial institution that is owned and organized by the member to reach prosperity. Credit Cooperative is formed by the group of people who have the same motivations and needs and operated the mutual funds, providing credit from their saving at the competitive rates based on mutual decisions. Credit Cooperative may not receive another capital besides the members. Credit union only accepts funds from the members and for members.
There are 3 principles of Credit Union, Education, self-help, and solidarity. Education aspect is the most important for the Credit Union to develop because Credit Union is growth by the education economic. Developed countries such as US and Canada have the rules that people who want to join Credit union must join the education training. As we can see in Pancur Kasih Credit Union, there are 2 basic economic education training.
Credit Union is priority to member interest in member prosperity. People are expected not to trust in moneylenders on behalf of the credit union. Credit union only lends money for the well characteristic member because of education principle for persuading member to know the financial literacy.
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