Loans may be granted to a member for various purposes but they shall not be granted for extra vagant or speculative purpose. Loans for productive purposes shall receive preference over others. No loans shall be made to a member within a month of his admission but this does not apply to the transfer of existing loans of a past member to his nominee on his admission or other successor in interest who is or is admitted as member of a society. No loan shall be advanced to a member not making monthly compulsory deposit. All applications for loans shall be-submitted to the Secretary with a clear and true statement of the purpose for which they are required, and they shall be dealt with by the committee at their next meeting according to their discretion. The committee is not bound to give any reason for rejection of a loan application.
All sureties must be members of the society and must have furnished the declaration required in Bye-law 25 (22).
All loans shall be granted within the maximum credit limit of member at the discretion of the committee on security of one or more sureties and shall not exceed as per decided by the comittee times the value of a member's paid up shares.
Ordinarily not more than 3/4 of the Capital of the society shall at any time be invested in loans or collateral security and such loans shall be subject to rules framed by the society and approved by the General Body or subject to any other instructions issued by Registrar from time to time.
In emergent cases, the Committee may grant to any member a loan, within his maximum credit limit without security not exceeding amount decided by the comittee in aggregate provided the amount thus advanced is covered by the amount of shares and savings deposits on the member's credit. Such loans shall be repaid within months decided by the comittee. The limit of emergent loan may be raised by the General Body from time to time.
Special loans irrespective of a member maximum credit limit and without personal security may be granted at the discretion of the committee against :- fixed deposit of a member with the society upto 90% of the deposits at a rate at least one per cent above his deposit rate.
Cash credit loans may be granted to selected members. Such loans shall be subject to rules framed by the Society and approved by the General Body
Against valuation of property mortgaged or pledged with the society which shall be revised annually by the Committee. All such property shall be insured to its market value against fire and theft. Vehicle loan may be granted as approved by General Body.
Loans shall be repaid in such number of monthly installment as may be fixed by the committee. The committee may suspend repayment of any instalment for one or more months on sufficient cause being shown and may there by extend the time of total payment by a period not exceeding six months. Loans granted for a period of less than three months may be repaid installment.
If the Committee find that the security for an outstanding loan has become insufficient or that the borrowers material position has weakened, committee shall call in the borrower to provide satisfactory security and in default shall call in the loan at once, the loan shall also be called back if the Committee find that it has not been applied to the purpose for which it was taken.
A member's commitment as surety shall not exceed two times of his maximum credit limit. Unavailed portion of a member's credit limit may be added to increase the limit upto which he may stand as surety. When a member has stood surety for an additional amount owing to his maximum credit limit, not being fully drawn, he may not draw further against his maximum credit limit until his liability as a surety has correspondingly decreased. Permanent sureties may be taken subject to rules and regulations approved by the General Body but the provisions regarding unavailed portion of maximum credit limit as mentioned above shall not apply in such cases.The limit to which a member can stand as surety in accordance with this Bye-law may be exceeded at the direction of the Committee in cases where collateral security is also taken.
Interest on loans from members shall be charged at a rate or rates to be fixed by the Committee with the previous sanction of the General Body, In case of default, penal rate shall be charged as may be prescribed by the General Body Meeting vide-bye-laws 25 (12). Which shall not excess 3% above normal rate of interest. The society may undertake Bills of Collections or Demand Draft business for its members with the previous sanction of the Registrar.
All documents creating a charge or obligation of the society shall be signed by the President/Secretary and Treasurer provided that in the case of receipt and cheques upto Rs. 5000/- and receipt for the deposits and repayments of loans. President or Secretary or Treasurer may sign. All important documents of the society Shall sealed with the Society's seal. They shall be kept in the custody of the Secretary / President.
The accounts of the society shall be audited at least once a year by an Auditor appointed by the society from the panel of CA's approved by the Registrar. The society shall pay fee to the Auditor as may be fixed by the Registrar, Cooperative Societies, Delhi from time to time.
Charging of Interest
Interest on loans shall be charged on monthly basis.
Interest shall be charged on principal loan amount as on the last day of the month.
Interest on loans sanctioned on or before 10th of the month, for the first month, shall be charged for whole month and for loans sanctioned after 10th of the month, interest shall be charged from the date of sanction. However, it shall not be applicable for Emergency Loan and Secured Loan against society’s deposit(s).
Interest for the first month, on Emergency loans and Secured loans against society’s deposit(s), shall be charged from the date of disbursement of the loan.
Cost of Loan Files
UPTO Rs. 10,000 Rs. 250
UPTO Rs. 10,000 TO 30,000 Rs. 450
UPTO Rs. 30,000 TO 50,000 Rs. 650
UPTO Rs. 50,000 TO 75,000 Rs. 1,500
UPTO Rs. 75,000 TO 1,00,000 Rs. 2000
UPTO Rs. 1,00,000 TO 1,50,000 Rs. 2,500
UPTO Rs. 1,50,000 TO 2,50,000 Rs. 3,000
UPTO Rs. 2,50,000 TO 5,00,000 Rs. 5,000
UPTO Rs. 5,00,000 TO 10,00,000 Rs. 10,000
UPTO Rs. 10,00,000 TO 15,00,000 Rs. 15,000
Loans to Members
It is responsibility of the applicant member to produce sureties for loan applied for as detailed below:
One Surety for a Loan upto Rs.10,000/- to 25,000/-
Two or more Sureties as per discretion of the committee for a Loan above Rs.25,000/- to Rs. 50,000/-
Three or more Sureties as per discretion of the committee for a Loan above Rs.50,000/- to Rs. 1,00,000/-
Three or more Sureties as per discretion of the committee for a Loan above Rs.1,00,000 to Rs.2,00,000/-