Loans and Advances
a. Loans, Cash Credits and/or Overdrafts on current accounts not exceeding Rs.1500000/-Repayable in 120 instalements
may be granted to members on security or securities Mentioned below or other security/securities approvedby the
Board from time to time relating to the Loans and advances of the society.
(iii)Industrial, Merchantile, Agricultural and other markatable commodities or machinery under pledge, hypothecation, or charge of the society.
(iv)Pledge of Government trustee/ securities, shares of approved companies, debantures and fixed deposits with the society.
(v)Issurance policies assign to the society within the surrunder value.
(vi)Gold and silver Ornaments
(vii)Any other Tangible security.
b. Loans and Advances may be granted to member/s against the security of their terms deposits with society and other security/s.
c. The Board shall frame detailed loan regulations prescribingthe procedure of sanction of loans, margin to be maintained, proportion of loans, proper terms and conditions
and the nature of securities acceptable for loans and advances for different purpose in accordance with the rules framed by the Board or insructions of the Apex Bank/Higher Authorities and the
Regisrar of co-operative societies,issued from time totime.
d. Applications for loans shall be dealt within order of receipt by the Board who may grant the same or any proportion thereof on such terms
and Conditions consisten with these Bye-laws approved rules as they think fit or may refuse the same, butthe reason for such refusal shall be recorded in the minutes and may not be
conveyed to the applicant for loan.
e. Loan plus interest shall be repayable on demand or in such installments as the board may determine.The Board may suspend repayments of
any installment/s on sufficient cause being shown.A borrower may pay of the whole or any balance of the loan due with interest thereon, on the
Date of Payments at any time during the currency of the Loan.
f. If the borrower fails to pay off the advance on demand or the installment fixed on the due date, the board may charge penal interest in addition to the
usual interest at the rate not exceeding two percent per annum on the amount overdue.