Abstract
The purpose of this study was to determine the effectiveness of the principle of capitalization in building wealth loan members of the Credit Union Angudi Laras Purworejo. The research method uses qualitative descriptive study with a sample size as many as 48 members. Members of the sampled are members who apply the principle of capitalization loan.
From the results of this research is that the application of the principle of effective capitalization loan to build wealth members. Because members can create assets (saved loans directly), an alternative product for members who have difficulty saving on a regular basis. In addition, borrowing capitalization in cual bring energy to the developing member.

Keyword: Effectiveness, loan capitalization, riches member