Credit Unions in Colombia
Credit unions are private commercial companies whose purpose is to meet the financial needs of their members. They perform the functions of a banking institution, but differ from banks in their form of administration and governance.
Their purpose is to hold savings and offer loans. In this sense, it is exactly the same as a bank. The difference is that while the former need not necessarily be linked to a social function or locality, credit unions are. The idea of a credit union is to offer loans for local interest. For example, loans to local farmers.
Credit unions for reporters
Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros (CONDUSEF), at 800 999 80 80 and in Mexico City at 55 5340 0999, web page www.condusef.gob.mx and e-mail [email protected]
The funds deposited in this account are protected by the Protection Fund referred to in Title Four of the Law to Regulate the Activities of Savings and Loan Cooperative Societies, up to 25,000 Investment Units, in accordance with the provisions established by the Technical Committee and the Cooperative Savings Protection Committee of the Trust that manages it.
Objectives of a credit union
You use your home as collateral when you borrow money and “guarantee” the financing with the value of your home. This means that if you don’t repay the financing, the lender can keep your home to cover the repayment of your debt.
Refinancing your home, getting a second mortgage, taking out a home equity loan or a home equity line of credit (HELOC) are common ways people use their home as collateral to obtain home equity financing. But if you are unable to repay the financing, you could lose your home and the mortgage amortization you have accumulated. The accumulated amortization on your home mortgage is the difference between what you owe on your mortgage and how much money you could get for your home if you sold it. High interest rates, finance charges and other closing and credit costs can also greatly increase the cost of borrowing money, even if you use your home as collateral.
These are non-speculative, non-profit social sector companies that, in accordance with the General Law of Cooperative Companies and the Law of Savings and Popular Credit, have the purpose of carrying out savings and loan operations with their members.
Authorized: They comply with the requirements of the National Banking and Securities Commission to carry out credit and savings operations with their members. In addition, they have a Deposit Insurance for an amount equivalent to 25,000 UDIS per saver.
BASIC LEVEL Their assets do not exceed the limit equivalent in local currency to 2.5 million UDIS. They do not require authorization from the National Banking and Securities Commission (CNBV) to carry out savings and loan operations. It does not have deposit insurance Authorized Operations:
In addition, it reviews them in terms of their regulation, accounting and financial situation; in terms of money laundering; and requests financial information from them every 3 months to evaluate their level of operation.