In recent years, cooperatives in Puerto Rico have increased the number of their members, as well as the request for their financial products, such as loans for energy saving systems, according to the Statistical Information Analysis of the Puerto Rico Savings and Credit Cooperatives of the first quarter of 2022.
“One of the lines with The biggest increase is that of the so-called ‘green’ loans to buy solar panels. Growth in the last 24 months it has been dizzying, between 78% and 150%. We hope to close 2022 with over $100 million in this type of loan”, reported Rafael Sánchez, Executive Vice President of the Public Corporation for Supervision and Insurance of Cooperatives of Puerto Rico (Cossec).
in 2019were made 406 loans for solar panels for a total of $8,304,080.92. for 2020the total was 791 loans, a 144% increase compared to the previous year, with a figure of $20,278,444.28.
for 2021the figure increased to 1,376 loans, an increase of 76% for a total of $35,657,502.34. In the In the first quarter of 2022, 266 ‘green’ loans were closed for a total of $43,656,379.21, 22% higher than 2021 for the same period.
The demand for this financial product is due, according to the executive, to the consumer’s need to seek savings options -after the increase in the price of food, basic necessities and services- through the purchase of equipment with greater efficiency to reduce energy costs that have been steadily rising.
Ask for more loans to purchase vehicles
Loans to acquire motor vehicles and commercial vehicles have also been very well received by cooperative clients, especially in towns outside the metropolitan area.
“Commercial loans that are guaranteed with their mortgages have had a boom in businesses in small towns, but the ones that have grown the most are car loans,” said Sánchez.
As of March 31, 2022the total of Loans in the portfolio of savings and credit cooperatives in the automobile line amounted to $5,749 million; an increase of $451 million (8.51%) compared to the previous year. The distribution of the loan portfolio is reflected in personal loans that constitute 39%, mortgages with 25% and auto loans with 24%.
More members in cooperatives
Nowadays there are 108 registered savings and credit cooperatives (CAC) insured and regulated by Cossec and the trend in the number of partners has been constantly growing. Between 2018 and 2022, membership increased from 988,983 to 1,110,581. This means a total of 121,598 additional members, which represents a 12% increase.
The cooperatives increased their assets and capital reserve by 31% and 4.36%, respectively, in relation to 2018. For the year 2022, total assets reflected an increase of 8.62% compared to 2021. Total shares and deposits amount to to $10,829 million. This represents an increase of 31% compared to 2018, and an 8.20% increase compared to 2021.
The distribution of deposits is 70% in savings accounts, 14% in savings certificates, 7% in checking accounts, 6% in certificates of deposits, followed by other products with less demand such as IRAs.
“First the federal aid for individuals arrived and now the infrastructure development aid is being disbursed, which will benefit the cooperatives in the next five years. The aid has not stopped and the growth of the cooperatives has been continuous, also due to the penetration we have in the communities”, highlighted the vice president about the projections of the cooperatives in the short and medium term.