In 1990, LZF established an informal savings-and-loan facility to address the employees’ financial concerns and to discourage them from going to other money lenders.
Five years later, it evolved into a credit cooperative and was acknowledged by the Cooperative Development Authority. The new set-up enabled the co-op to own its first Piandré salon along Del Monte Avenue.
As it started owning retail brands, it became the Piandré Salon Multipurpose Cooperative Inc. The co-op members elect a board of directors to jointly determine how the business is run.
Employees contribute a low of P500 a month to the cooperative’s kitty which is deducted from the salary. Many of them consider it their savings for the rainy day. They can avail themselves of a loan worth up to double their share capital.
For instance, if an employee put in an accumulated P100,000 to the co-op, he can borrow P200,000 and pay it back with interest over 24 months.
“The procedure for lending depends on how much share capital the members have earned. They can borrow depending on their financial capacity,” says Gregor Teaño, the co-op chairman and senior stylist.
These plans cover provident loan for home repair and construction; loans for emergencies, education, appliances and businesses for members who want to embark on another livelihood.
