Borrowers

"With Cooperative borrowers benefit from lower rates of interest from credit provided directly through the platform by fellow Cooperativa members and are exclusively employees of a Cooperativa host company"

Coopertiva offers separate loan products addressing short term and long terms lending provision.

The mix of products offered within each host and eligibility criteria are set on a host by host basis.

Short Term Loans: This loan and savings product will allows borrowers to be borrow for terms of up to 1 month, effectively between paydays. Borrowers can borrow a certain proportion of their salaries effectively collateralised by the proportion of salary already earned in that month.The effective risk in this loan product is low and offers a lower cost alternative to pay day lending and credit card financing at significantly lower rates (e.g. Payday loan rates typically exceed 4000%) ​

1 year Loans: This product allows borrowers to borrow for terms of up to 1 year dependent on length of tenor and other criteria established by the host company. 1 - 3 year loans: This product alows borrowers to borrow for terms of up to 3 years again dependent on tenor and other criteria established by the host company. The risk in this product is higher due to the need to manage payments outside of the cooperative in the case that borrowers leave the company. As such the requirments for the eligeability requirments for these loans are also higher ​

Once the lender has entered their request they wait for these requests to be met by funding from lenders on the platform, with a guarantee of funding from separate Cooperativa lenders n the case that memeber based funding is insufficient.

Eligibility

"To borrow within defined limits, terms and rules (e.g. existing debt, cash flow checks) are established by the host"​

Cooperativa operates an upper lending limit of 1 months net salary with larger amounts avaialble with additional guarantees provided by the host company. This is decided on a host by host basis.

Importantly for loans up to 1 year there is no requirement for borrowers to be credit-checked using a credit reference agency (CRA) or pass complicated and non-transparent creditworthiness tests since Cooperativa bypasses these requirements by limiting the lending pool to employees of the company. ​

​Alternatively, longer Term loan products or for loans greater than 1 months net salary will require credit checking of the borrower in the absence of host guarantees or other loan guarantee arrangements (See "Plus Cooperativa")