Loans

1. 1. Loans may be granted to a member for any necessary purpose. No loan shall be advanced to a member who is a persistent defaulter in the payment of loan instalments. Application for loans shall be submitted to the Secretary stating the purpose for which the loan is required.
   2. Subject to any general or special restrictions or conditions imposed by the Registrar from time to time the Committee may at their discretion, grant to any member, a Loan not exceeding Rs. 500000/- or 15 times of Compulsory Deposit(Non-Withdrawal)/pay in Pay Band + Grade Pay, whichever is the least and shall take surety and sureties in each case.
   3. All sureties must be members of the Society. A member shall not stand surety for a sum exceeding Rs. 100000/- in each case.
   4. Emergency Loan up to Rs. 50000/- Repayable in 20 instalments may be granted to any member by the Secretary.
   5. Secured Loans up to 90% of the amount repayable in 20 instalments, covered by share money and Compulsory Deposit (Non-Withdrawal) may be granted to any member by the Secretary.
   6. The Loan ordinary shall be repaid in such number of monthly instalments as may be fixed by the Committee upto a maximum of fifty.
   7. Interest on Loans shall be charged at a rate of 9.75% per annum on monthly reducing balance. If a member fails to pay by the due date the amount due from him on account of loan instalment, an additional penal interest at a rate of 3 % on the total outstanding on that date shall be charged in addition to the amount of ordinary interest.

Bad Debts Fund

Bad Debts Fund – 100 % write off of outstanding Loan of deceased Members from Bad Debts Fund after adjusting their credit in Share Money and Compulsory Deposits. 1% Amount from every new Loan will be deducted for Bad Debts Fund.