TCC Credit Co-operative Hot
TCC Credit Co-operative is a non-for-profit financial institution different from Banks and Finance Companies.
A credit co-operative is owned and controlled by the people who use its services. Credit co-operative are not-for-profit and exist to provide a safe convenient place for its members to save money and get loans at reasonable rates.
As it does not have shareholders the way commercial banks do, it instead pays out its profits to members in the form of higher interest and yearly dividend payments.
User Ratings Summary
User rating summary from: 2 user(s)
Lots of benefits but takes time to learn about it
I joined as member of TCC in year 2000 when I took an interest-free study loan from it. The school has a tie-up with TCC and I immediately sign up for it. It was not that my family did not have good credit standing with the commercial bank but who would not choose to go for interest-free loan?
I do not know much about it when I first sign up. However year after year, it paid me good interest with good service and gave me much less problem than the strongest bank in Asia. TCC left me a good impression when I went to them again in 2005 for a loan to help out with my Mum's hospital fees. The process was tedious but through it, they found out that I only needed small amount of money each month to roll over to the next. Instead of trying to earn my hard earned money by agreeing to loan me a huge sum, they told me as member I am entitled to certain benefits and got it all worked out for me, without me having to pay a single cent of interest. Then again in 2011, I went for operation after operation and I was entitled to claim the hospitalization benefit. Not a huge sum of money but it helps to pay off the miscellaneous fees my family has to spend while caring for me in the hospital.
One improvement I hope to see is for TCC to let members know their benefits. There are so many benefits but I need to dig or ask and sometimes, I got to know it too late for the claim to be valid for process.
Sensationalized legal money lender?...
After a glance through TCC Credit Co-operative’s overview, I remain puzzled as to how such an institution works. Let’s rationalize: It’s claim of,“higher interest and yearly dividend payments” to its depositors, would also imply higher interests levied on its loans dished out. As such, would loans be extended to those in need at, “reasonable rates”? Perhaps loan rates are deemed reasonable when one takes into consideration the applicant’s bad credit history and thus inability to be eligible for loans from traditional commercial banks. Commercial banks are stringent on their selection of loan applicants as they have to comply with the MAS’ minimum capital requirements(in Notice 637: Notice on Risk Based Capital Adequacy Requirements for Banks Incorporated in Singapore). Upon consideration of the aforementioned, the co-operative seems to be somewhat of a legal/licensed money lender.
Unemployed individuals and those with bad credit history are ineligible to apply for traditional loans from commercial banks. So these marginalized individuals turn to licensed money lenders and loan sharks for their much sought after loan extension. At the end of their tethers, these unfortunate, marginalized individuals would declare bankruptcy. My humble opinion at this juncture is; always spend within your means and never beyond. On this note, I’d like to relate an incident at work whereby an individual explored financial borders well beyond his means:-
One day, it was brought to my attention that one of my young hirees, Aaron**, had borrowed a large sum of money from another colleague of his. This colleague was most distraught as she had pawned her gold to loan him money of which he’d yet to return her despite the fact that she was to return to India the next day. She was unable to extend her stay in Singapore as she had resigned (to return to India to deliver her first-born) and thence her work permit cancelled. Being the unfortunate mediator, I suggested that principal plus interest (based on the rates levied out by commercial banks) be repaid via Western Union over a span of three months. This was because Aaron did not have a bank account as his previous accounts had been frozen as he’d yet to repay their loans AND he was somewhat penniless with a meager $20 hand-out daily from his parents for his meals and travel expenses. As I dug further, it was brought to my attention that Aaron had borrowed money from countless other colleagues and loan-sharks(who’d recently splashed paint at his parent’s home). Aaron was almost half my age and probably earned half of what I did and yet he was always decked out in fine raiment from high-end designers whilst squinting through a pair of black Gucci rims. I’d run into him one week-end (with his arms round the waist of a girl towering a head and a half above him) toggling paper bags from Burberry’s, Gucci, Ralph Lauren and Ambush. The latter was a boutique specializing in underground street wear and a t-shirt there is known to cause a dent of $500+ on one's account! Finally,I was forced to “discharge” him of his employment with the firm when CPIB came knocking on our door. Just before he packed up to leave, he attempted to fleece his old superior by asking me for a loan of $1,600 in a text message; on the pre-text that he required funds for legal aid. Proudly disclosing to me that he was financially not eligible for Pro-bono legal services. Last I heard, he was charged for graft (S406 PC Cap 224).
** Not his real name.