CFI stands for “Cooperative Financial Institution” or in French referred to as “Cooperative d’Epargne et de Credit”? .
A CFI is a user-owned financial institutions that offer both savings and credit services to their members. Members of these financial institutions can be both net savers and net borrowers. Depending on a country’s legal framework, CFIs may be authorized to mobilize member savings and non-members savings or member savings only. CoopCongo is a member savings only type of CFI.
- A CFI is a financial cooperative society established by voluntary people based on the philosophy of building a self-help society or “people helping people”.
- A CFI is owned, managed, controlled by members. Members have the right to decide on its issues, members have the right to benefit from its service.
- A CFI is formed initially for the poorer to provide financial services such as safe place for savings and providing easy accessible loans to members.
- A CFI is “not for profit or for charity” but serve members at fair profit margins.
- In A CFI members’ savings form a good pool of money, from which loans are made to members with fair lending interest and the interest rate is decided by members.
- In A CFI once overhead and other expenses are paid, reserve for a cushion against any loss, and for expansion of services set aside, the remaining income from loans is returned back to members in the form of a dividend on savings, benefits, share, or both.
- In general CFIs are financial institutions designed for people to have their own efficient financial service giving institutions that empowers themselves in building asset by teaching thrift culture and make themselves accessible to credit in a sustainable way.