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A. INTEREST RATES:
1. FIXED DEPOSITS (INCLUDING RECURRING DEPOSITS):
1.1.The interest rate on deposits shall be decided by the Board or the empowered Executive Committee from time to time.
1.2.The interest rate shall be communicated to the members and prominently displayed on the Society's website and notice board.
1.3.The interest rate shall be calculated on the basis of the period of deposit on 360 days a year basis.
2. LOANS:
2.1.The interest rates on various loan products shall be decided by the Board or the empowered Executive Committee from time to time.
2.2.The interest rate shall be communicated to the members and prominently displayed on the Society's website and notice board.
2.3.The interest rate shall be calculated on the basis of the type of loan, amount of loan, and the period of repayment.
2.4.The Society shall encourage regular repayment of interest by offering a rebate on the interest rate for prompt and regular repayments.
2.5.The rebate rates and eligibility criteria shall be decided by the Board or the empowered Executive Committee.
3. PENAL INTEREST:
3.1.In case of delay in payment, penal interest shall be charged at the rate decided by the Board or the empowered Executive Committee on the overdue amount.
3.2.The penal interest rate shall be higher than the regular interest rate and shall be communicated to the members.
3.3.In case of default for more than 3 consecutive months, the society may take appropriate legal action against the member.
B. SERVICE CHARGES:
1. LOANS:
1.1.The Society may levy processing charges on loans as decided by the Board or the empowered Executive Committee from time to time.
1.2.The Society may levy pre-payment charges on loans as decided by the Board or the empowered Executive Committee from time to time.
2. FIXED DEPOSITS:
2.1.The Society may levy service charges on fixed deposits for premature withdrawals as decided by the Board or the empowered Executive Committee from time to time.
C. AUCTION:
1. GOLD LOANS:
1.1.In case of default in repayment of a gold loan, the Society may initiate the process of auction of the pledged gold after providing adequate notice to the member.
1.2.The auction process shall be carried out as per the provisions of the Multi-State Cooperative Societies Act, 2002 and the rules and regulations framed thereunder.
1.3.The Society shall have the right to recover the outstanding amount from the proceeds of the auction.
2. OTHER LOANS:
2.1.In case of default in repayment of any other loan, the Society may initiate the process of auction of the pledged asset, after providing adequate notice to the member.
2.2.The auction process shall be carried out as per the provisions of the Multi-State Cooperative Societies Act, 2002 and the rules and regulations framed thereunder.
2.3.The Society shall have the right to recover the outstanding amount from the proceeds of the auction.
D. COMMUNICATION CHARGES:
1. LOANS:
1.1.In case of communication with the member through registered post, courier or any other mode of communication, the Society may levy communication charges as decided by the Board or the empowered Executive Committee from time to time.
2. FIXED DEPOSITS:
2.1.In case of communication with the member through registered post, courier or any other mode of communication, the Society may levy communication charges for issuance of duplicate fixed deposit receipt as decided by the Board or the empowered Executive Committee from time to time.
E. MINIMUM INTEREST:
1. FIXED DEPOSITS:
1.1.In case of premature withdrawal of a fixed deposit, the member shall be entitled to receive interest at rate not less than 7% pa.
2. BUSINESS LOANS:
Eligibility:
2.1.Any member who has been associated with the Society is eligible to apply for a Business Loan.
2.2.The applicant must provide a detailed business plan and financial statements of the business for the past 3 years.
2.3.The applicant must also provide collateral security in the form of immovable property or any other acceptable security as per the Society’s policy.
Loan amount and repayment:
2.4.The loan amount shall be determined based on the financial standing of the business, repayment capacity of the applicant and the value of the collateral security provided.
2.5.The maximum repayment period shall be 5 years.
2.6.Regular repayments are encouraged and in case of default, penal interest shall be charged at a rate decided by the Board or the empowered Executive Committee.
2.7.Service charges and communication charges in case of auction or recovery shall also be levied as per the Society’s policy.
3. GOLD LOANS:
Eligibility:
3.1.Any member who has been associated with the Society.
3.2.The applicant must provide gold jewelry as collateral security.
Loan Amount and Repayment:
3.3.The loan amount shall be determined based on the value of the gold jewelry provided as collateral security.
3.4.The maximum repayment period shall be 12 months.
3.5.Regular repayments are encouraged and in case of default, penal interest shall be charged at a rate decided by the Board or the empowered Executive Committee.
3.6.In case of default, the Society shall have the right to auction the gold jewelry to recover the outstanding amount. The auction shall be conducted as per the Society’s policy and the proceeds shall be adjusted against the outstanding amount. Any excess amount shall be refunded to the borrower.
3.7.Service charges and communication charges in case of auction or recovery shall also be levied as per the Society’s policy.
4. MICRO CREDITS :
Eligibility:
4.1.Any member who has been associated with the Society as part of Joint Liability Group consisting of minimum 5 members is eligible to apply for a Micro Credit.
4.2.The applicant(s) must have a business or productive income generating activity or the proposed activity.
Loan Amount and Repayment:
4.3.The loan amount shall be determined based on the financial standing of the business and repayment capacity of the applicant.
4.4.The maximum repayment period shall be 1 week.
4.5.Regular repayments are encouraged and in case of default, penal interest shall be charged at a rate decided by the Board or the empowered Executive Committee.
4.6.Service charges and communication charges in case of recovery shall also be levied as per the Society’s policy.
F. GENERAL PROVISIONS:
1. Discretion of the Society:
The Society may use credit scoring models to assess the creditworthiness of the borrower and decide on the interest rate to be charged. The credit score may be based on factors such as the borrower's credit history, income, employment stability, and other relevant factors.
2. Default and Recovery:
In the event of default by the borrower, the Society will take necessary steps to recover the outstanding amount. This may include legal action, asset seizure, and auction of collateral. The Society may also charge penal interest and other charges as deemed appropriate for delayed payments or non-payment.
3. Service Charges:
The Society may charge service charges for various services provided to the borrower such as processing fees, prepayment charges, late payment charges, and other charges as deemed appropriate.
4. Auction Charges:
In the event of auction of collateral, the Society may charge communication charges and other charges as deemed appropriate.
5. Minimum Interest:
The Society may charge a minimum interest rate of 7 days or Rs. 50, whichever is higher, for loans and credit facilities.
6. Interest Calculation:
Interest on loans and credit facilities will be calculated on a daily reducing balance basis.
7. Revision of Interest Rates:
The Society reserves the right to revise the interest rates and charges at any time as deemed appropriate by the Board or the empowered Executive Committee.
8. Communication:
The Society will communicate the interest rates, charges, and other terms and conditions of the loans and credit facilities to the borrowers in a clear and transparent manner.
9. Grievance Redressal:
The Society will have a grievance redressal mechanism in place to address the grievances of the borrowers in a timely and efficient manner.
10. Regular Updates:
The Society will regularly update its interest and credit policies based on market conditions, regulatory changes, and other relevant factors to ensure the policies remain relevant and effective.
