Information about loans
- 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.
- 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.
- All sureties must be members of the Society. A member shall not stand surety for a sum exceeding Rs. 100000/- in each case.
- Emergency Loan up to Rs. 50000/- Repayable in 20 instalments may be granted to any member by the Secretary.
- 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.
- The Loan ordinary shall be repaid in such number of monthly instalments as may be fixed by the Committee upto a maximum of fifty.
- 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.