Cooperativas de Ahorro y Crédito

Cooperativas de Ahorro y Crédito, or savings and credit cooperatives, are community-based financial institutions that offer members a way to save money and obtain loans. Members pool their savings, which the cooperative then uses to provide loans to those in need. This system promotes financial inclusion, as it often serves underserved populations. Profits are typically reinvested in the cooperative or distributed among members. By working together, members benefit from lower interest rates on loans and higher rates on savings, fostering a sense of community and mutual support in managing finances.