Republic of the Philippines

ISO 9001: 2015 CERTIFIED

COOPERATIVE CONCEPTUALIZATION
Activity Number 2

Unit 1: Nature of Cooperative Management

In partial fulfilment of course requirements in

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ELECT 415 : COOPERATIVE MANAGEMENT

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Submitted by:

Cabillan,Kristel M.
Aranzado, Jan Andrea M.
Alinso-ot, Jaysan L.
Almazan, Jannie Grace R.
Almen, Zandra, N.
Cabalquinto, Jessica C.
Arnejo, Febenia, S.
BSBA IV-FM4C

Submitted to:

Mr. Mark Anthony R. Corpin

Part-time Instructor

29 August 2023
Name of Cooperative:

VEBLAMCO - This stands for: Villa El Blanco Laborers-Almeria Multi-Purpose Cooperative

- Villa El Blanco Laborers-Almeria Multi-Purpose Cooperative (VEBLAMCO) is an

institution that established with the goal of assisting laborer-workers and its family, also
this was organized as it aims to uplift the standard of living of workers and its
community.
- VEBLAMCO primarily provide savings and credit services, along with insurances, agri-
business and general merchandise to better meet the community needs, support well-
being of the members, address common challenges and achieve shared goals in the
housing of Almeria, as VEBLAMCO is committed to contribute to the overall
development of its communities and societies they serve.

LOGO of VEBLAMCO:
Mission and Vision

Mission: VEBLAMCO commits to uplift the standard of living of cooperatives members and
housing community, empowers labor-workers’ health, upholds rights, promotes members’
social welfare, economic independence, and long-term financial stability

Vision: To be a leading and viable cooperative in Almeria in providing integrated financial

products and quality services to the member-owners.

Objectives and Purpose of Cooperative

Objectives: Associated to its Vision and Mission, the VEBLAMCO aims to:

 MEMBER-WORKER Objectives - to give better services and benefits to member-

worker and improve each workers’ standard of living and offer them transparent profit-
sharing.
 CLIENT Objectives – to value the existence of clients as part of cooperative by
retaining quality products and professional service to fulfill their needs.
 Community Development Objectives – to ensure the economic development of
housing communities by providing loans, services and encourage active participations
within the community we serve.
 Financial Objective- to sustain the coop financial stability and ensure efficient
resources management.

Purpose:

Inline of uplifting the standard living of people, especially the laborers residing in the housing
community in Villa El Blanco that is located Almeria, the purpose of VEBLAMCO is to:

(a) highlight the laborer-workers and their way of living, as well as to give them focus, support
on their social needs and importance.

(b) help member-workers develop, grow and replicate

(c) provide greater benefits and services to enhance way of living of the community

Type of Cooperative:

Multi-Purpose Cooperative

 VEBLAMCO is a multipurpose cooperative as this is a combination of several business

activities that offers a wide variety of products and services such as savings, loans,
insurance, agri-business and general merchandise. This coop intent to fulfill different
 common need in one organization. As VEBLAMCO is responsible to help not just the
laborer-workers but also the community they serve as a whole.

Products and Services to be offered

- VEBLAMCO offer a diverse range of products and services that cater the needs and
interest of its members and the community, and this includes Savings, Loans,
Insurances, Agri-Business and General Merchandise. Here are the categories of
products and services this cooperative offer:

Savings

Types of Savings VEBLAMCO offers.

1. Retirements savings- This savings type is for the purpose of ensuring member financial
security and a comfortable lifestyle when it comes to their retirement years.

 Initial Deposit- 650

 Interest rate – 3% per annum
 Maintaining Balance to Earn Interest – 650
 Benefits- Convenient access to loans and Insurances

2. Kids and Children Savings- This is a savings account for children’s those ages 0-17. The
purpose is also for various purposes such as, building asset, finance for educations, goal
setting and other long-term planning for young adults.

 Initial Deposit- 150

 Interest rate – 3% per annum
 Maintaining Balance to Earn Interest – 500
 Benefits- Access to Educational loans

3. Regular Savings- This is a main account that is openly available to public membership, that
it will make it simple for individuals to set their money aside for various purposes. In which,
they may be used for their own needs and in businesses.

 Initial Deposit- 500

 Interest rate – 3% per annum
 Maintaining Balance to Earn Interest – 500
 Benefits- Insurance and convenience debit/credit

4. Share Capital Savings- This savings if for members’ larger investment by purchasing shares
as a part of its responsibility in VEBLAMCO.
  Initial Deposit- 2,500
 Interest rate – To be declared by VEBLAMCO through sharing of dividends.
 Maintaining Balance to Earn Interest – 2,500
 Benefits- Insurances and convenience debit/credit

5. Emergency Fund Savings- This is a wealth building product intended to make up when it
comes to financial shortcomings during emergencies and any unforeseen circumstances.

 Initial Deposit- 2,000

 Interest rate – 2% per annum
 Maintaining Balance to Earn Interest – 2,000
 Benefits- Insurances and convenience debit/credit

Loans

Types of Loans VEBLAMCO offers.

1. Emergency Loan- This loan is provided for the short-term financial assistance for individuals
in times of their unexpected financial needs.

 Maximum Loan Amount- 200,000

 Maturity Term- 8-12 months
 Payment option- Weekly / Monthly
 Interest Rate- 2% per month
 Capital Build Up- 1.5% of loan amount.

2. Puhonan/ Pangkabuhayan – This is also known as business capital loans, and this loan is
intending to provide necessary funds for business start-up, or to finance existing businesses
to maintain business operations.

 Maximum Loan Amount- 300,000

 Maturity Term- 1-2 years
 Payment option- Weekly / Monthly
 Interest Rate- 3% per month
 Capital Build Up- 2% of loan amount.

3. Equipment Loans- This loan is used to finance members need for purchasing machinery
and materials. As this loan is designed to help workers make it easier for them to buy tools
without having to pay the full cost upfront.

 Maximum Loan Amount- 150,000

 Maturity Term- 6-8 months
  Payment option- Weekly / Monthly
 Interest Rate- 2% per month
 Capital Build Up- 1.5% of loan amount.

4. Students Loan- This loan is intended for students’ financial assistance to help them cover
the cost of their children education including tuition, other school fees and for educational day-
to-day educational expenses.

 Maximum Loan Amount- 100,000

 Maturity Term- 10-15 months
 Payment option- Weekly / Monthly
 Interest Rate- 2% per month
 Capital Build Up- 1.5% of loan amount.

5. Regular Loan- This is a primary traditional loan offered by VEBLAMCO, in which can be
used for various purposes. This includes any financial needs, personal expenses, debt
consolidation etc.

 Maximum Loan Amount- 250,000

 Maturity Term- 8-12 months
 Payment option- Weekly / Monthly
 Interest Rate- 2% per month
 Capital Build Up- 2 % of loan amount.

6. Housing Loan- This loan is design for the purpose of allowing members to have funds for
their home improvement, and other residential property purposes.

 Maximum Loan Amount- 500,000

 Maturity Term- 2-3 years
 Payment option- Weekly / Monthly
 Interest Rate- 2% per month
 Capital Build Up- 2.5% of loan amount.

Insurances

- VEBLAMCO offers insurance services, as it aims to provide members with financial

protection, and risk management solutions by addressing their various insurance
needs. Also, to ensure that members can choose the insurance plan that best suits
their necessity.
Life Insurances:

1. Family Protection Plan- This insurance provide additional protection to the cooperative
member dependents

Amount of Insurance
Benefits Principal Spouse Dependents (Max. of
Member 3)
Life Insurance 100,000 50,000 30,000
Accidental Death & 80,000 30,000 25,000
Dismemberment
Cash Burial Benefit 40,000 20,000 15,000
Annual Premium 950
Insurance Provision:
- Death by self-destruction or suicide is not compensable within 1 year from the
effective date or insurance.

2. Kids and Youth Secure- This is for kids and youth who are associate members of the
cooperatives or dependents of the cooperative members.

Amount of Insurance
Benefits Option 1 Option 2 Option 3
Death due to natural 10,000 15,000 20,000
cause or sickness
Accidental Death 20,000 30,000 40,000
Cash Burial Benefit 2,000 3,000 4,000
(natural causes only)
Accidental Medical 2,000 3,000 4,000
Reimbursement
Annual Premium 50 80 95
Insurance Provision:
- Death by self-destruction or suicide is not compensable within 1 year from the
effective date or insurance.

3. Workers Life and Accident with Fire Insurance- This insurance is for the workers, especially
for the laborers, farmers and fisherman.

Amount of Insurance
Benefits Coverage
 Accidental Death, Dismemberment & 55,000
Disablement
Unprovoked Murder & Assault 30,000
Cash Burial due to Accident 20,000
Death due to natural causes 15,000
Fire Insurance 10,000
Annual Premium 300
Insurance Provision:
- Death by self-destruction or suicide is not compensable within 1 year from the
effective date or insurance.

Non-Life Insurances:

1. Property/Housing Secure

Amount of Insurance
Benefits Coverage
Residential Fire Insurance for Households 50,000
Comprehensive Personal Liability (Home Premises)
Personal Liability 20,000
Medical Payment 2,500
Damage to Property 2,000
Accident Death & Dismemberment 25,000
Insurance
Bereavement Assistance (any type of death) 3,000
Annual Premium 250

2. Workers Equipment Cover

Amount of Insurance
Benefits Coverage
Contractors/Laborers Equipment Insurance 30,000
Fisherman Equipment Insurance 30,000
Farmers Equipment Insurance 30,000
Annual Premium 300
Agri-Business

- VEBLAMCO has an agricultural business that involves various activities such as

piggery and poultry. That it is a combination of agricultural production and business
principle to create a profitable and sustainable enterprise in this cooperative, which
also aim to deliver a better food production and distribution in the community.

1. Pig Framing - This is a piggery business that involves raising and breading pigs for a variety
of purposes. This includes pet pigs, pork processing and meat production.

2. Poultry – This is a poultry business that involves the breeding and raising of poultry animals
for various purposes such as meat production and egg production, this includes chickens and
ducks.

General Merchandise

- The purpose of VEBLAMCO general merchandise is to offer broad range of goods and
products for the members and customers that will cater the needs and preferences in
the community. This includes a variety of store for consumer products such as
Groceries, Mineral Water Station, and a Hardware.

1. Hardware

- VEBLAMCO hardware is a retail establishment that sells a wide range of

hardware products, such as tools, building materials, any related supplies for
construction, farm machinery and equipment, farming inputs, households’
essentials, improvements, and electrical repair and many more. This store is
designed for primarily the workers that they can ensure quality and reliability of
the product offers.

2. Groceries

- The VEBLAMCO groceries, is a retail establishment that sells daily essentials

and food products to the members and customers at a reasonable price. This
also provide fresh, and locally produces products. This store offers a unique
shopping experience especially to members, that they may enjoy special
benefits like discounts, exclusive offers, and product offerings.

3. Mineral Water Station

- VEBLAMCO set up mineral water station store to provide a valuable service to member
and ensure clean, safe drinking and reliable source of water for the community. In
 which they can expect that it can exceed healthy and safety standards of water and
build trust with them.

Organizational Structure

General Policy of VEBLAMCO:

Types of Membership

- VEBLAMCO has two kinds of members. As it is stated in Section 26 of RA 9520, that

a cooperative may have two members, and these are Regular Member and Associate
Member. This two has a distinction when it comes to rights, level of engagement, and
privileges they may get within cooperative.

1. Regular Member- These are individuals who have full membership, have full range of rights
and privileges that they can include in voting rights, access participation in decision-making,
and can extend commitment to VEBLAMCO goals, mission and activities.

2. Associate Member- This type of members can only have limited membership, limited rights
and privilege, no voting rights and no participation in decision-making process. These
individuals are focus on specific benefits, services and discounts offered by VEBLAMCO.
Membership Application:

For Regular Member:

1. Membership is available to any Persons, legal age Filipino Citizens residing anywhere in
the Biliran.

2. The application forms must be completed and officially signed by a regular member before
the submission date. Be wary that the management will carry out further investigation if the
endorser is not present.

3. Strictly that in a time of membership, a person must be 18 years old.

4. Applicant must be willing to go through personality test and succeed. Afterwards, this are
the following requirements to submit. (1) Barangay and Police Clearance, (2) Signed Regular
Membership Application Form with attached 2x2 picture.

5. Willing to attend the required Pre-Membership seminar.

6. Must be willing to pay 500 for the membership fee, and to pay 20,000 amount for initial paid
capital.

7. Must start a savings account with at least 500 deposit amount.

8. Must willing to extend cooperation and participation in VEBLAMCO.

9. Agree to accept the responsibility, and willing to take part in VEBLAMCO decision-making.
His/her also can have the rights to be elected as officer in VEVLAMCO.

10. Can enjoy the privilege to avail products and services offered by VEBLAMCO.

For Associate Member:

1. Individuals who is at least 18 years of age.

2. Agree to have a minimum of 500 and maximum of 3,500 pesos of shares, and the interest
will depend on the authorized annual dividend distribution.

3. Willing to pay a 150 pesos’ membership fee.

4. Must keep a savings account with at least 500 pesos’ deposits.

5. Must be willing to attend orientation seminar.

6. Must have any deposit account opened in VEBLAMCO by an individual, joint account or
association.
7. Must agree that his/her chosen membership has no right to participate in decision-making
in VEBLAMCO, but may offer any suggestions to help enhance the cooperative services and
operations.

8. Must be clear that his/her membership has no right to run for officer or be elected as one of
cooperative officer.

Target Market: The target market of VEBLAMCO is in the Housing Community especially
workers, such as laborers, fisherman and farmers. However, the people living outside housing
are welcome to join in this cooperative. Another target market included are entrepreneurs,
business owners and the whole municipality of Almeria.

Initial Capitalization: Approximately 10-15 million pesos’ funds needed for the start-up of
this cooperative, it includes the building of its branch office, opening store, credit funds, and
resources needed for the operation and management.