The end goal of Koperasi Kasih Indonesia is to help its members reaching prosperity. To achieve that very goal, these are what Koperasi Kasih Indonesia offer:

 

1. SAVING ACCOUNT

  • Free of charge
  • No savings or withdrawal requirement
  • No interest

 

2. LOAN

  • Amount: 55 – 280 USD (500,000 – 2.5 million IDR)
  • Interest: Declining as size grows
  • Duration: 25 weeks
  • Payment frequency: Weekly at compulsory meeting
  • Group lending: 15-20 people per group
  • Applies joint liability, using compulsory savings
  • Good performers could ‘graduate’ to accelerated program (borrow bigger amount individually, flexible payment terms, lower interest)

 

3. FINANCIAL EDUCATION

  • Compulsory savings: Borrowers must save 0.3 USD/week or more, free of charge. Lessons: ~50% save a bit more than what’s asked. But when they got the compulsory savings, most spent it all right away
  • Spending management: Help them identify daily income and spending and make spending budget. Lessons: <20%, mostly young women, applies the lesson but the reduction from snack spending is used for other things, <5% saves it
  • Saving for your dream: Invite them to set a goal and help them calculate how much and for how long they need to save to achieve it.   Lessons: They realized that saving is the only way to acquire big assets. However it was before fasting, spending was increased, mostly failed to save