Comprehensive Interest & Credit Policy

Official Policy Content

1. Interest Rates — Fixed Deposits including Recurring Deposits

1.1 The interest rate on deposits shall be decided by the Board or empowered Executive Committee from time to time.
1.2 The interest rate shall be communicated to members and prominently displayed on the Society 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.

2.1 Interest rates on various loan products shall be decided by the Board or empowered Executive Committee from time to time.
2.2 Interest rates shall be communicated to members and displayed on the Society website and notice board.
2.3 Interest shall be calculated based on loan type, loan amount, and repayment period.
2.4 The Society shall encourage regular repayment by offering rebate on interest rate for prompt and regular repayments.
2.5 Rebate rates and eligibility criteria shall be decided by the Board or empowered Executive Committee.

3.1 For delay in payment, penal interest shall be charged at rates decided by the Board or empowered Executive Committee on overdue amounts.
3.2 Penal interest shall be higher than the regular interest rate and communicated to members.
3.3 In case of default for more than three consecutive months, the Society may take appropriate legal action against the member.

4.1 The Society may levy processing charges and pre-payment charges on loans as decided by the Board or empowered Executive Committee.
4.2 The Society may levy service charges on fixed deposits for premature withdrawals as decided from time to time.

5.1 In case of default in repayment of a gold loan, the Society may initiate auction of pledged gold after adequate notice to the member.
5.2 Auction shall be carried out as per the Multi-State Cooperative Societies Act, 2002 and rules/regulations framed thereunder.
5.3 The Society has the right to recover outstanding amount from auction proceeds.
5.4 For other loans, the Society may initiate auction of pledged asset after adequate notice and recover outstanding amount from auction proceeds.

6.1 For communication with members through registered post, courier, or other modes, the Society may levy communication charges as decided from time to time.
6.2 For fixed deposits, communication charges may be levied for issuance of duplicate fixed deposit receipt as decided by the Board or empowered Executive Committee.

7.1 In case of premature withdrawal of a fixed deposit, the member shall be entitled to receive interest at a rate not less than 7% p.a.

8.1 Eligibility: Any member associated with the Society is eligible to apply for a Business Loan.
8.2 The applicant must provide a detailed business plan and financial statements for the past three years.
8.3 Collateral security must be provided in the form of immovable property or other acceptable security as per Society policy.
8.4 Loan amount shall be determined based on financial standing, repayment capacity, and value of collateral security.
8.5 Maximum repayment period shall be five years.
8.6 Regular repayment is encouraged; default may attract penal interest as decided by the Board or empowered Executive Committee.
8.7 Service charges and communication charges in case of auction or recovery shall be levied as per Society policy.

9.1 Eligibility: Any member associated with the Society may apply by providing gold jewelry as collateral security.
9.2 Loan amount shall be determined based on value of gold jewelry provided as collateral.
9.3 Maximum repayment period shall be 12 months.
9.4 Regular repayment is encouraged; default may attract penal interest as decided by the Board or empowered Executive Committee.
9.5 In case of default, the Society may auction the gold jewelry to recover outstanding amount. Any excess amount shall be refunded to the borrower.
9.6 Service charges and communication charges in case of auction or recovery shall be levied as per Society policy.

10.1 Any member associated with the Society as part of a Joint Liability Group of minimum five members is eligible to apply for Micro Credit.
10.2 Applicant(s) must have a business or productive income generating activity or proposed activity.
10.3 Loan amount shall be determined based on financial standing and repayment capacity.
10.4 Maximum repayment period shall be one week.
10.5 Regular repayments are encouraged; default may attract penal interest as decided by the Board or empowered Executive Committee.
10.6 Service charges and communication charges in case of recovery shall be levied as per Society policy.

11.1 The Society may use credit scoring models to assess borrower creditworthiness and determine interest rates based on credit history, income, employment stability, and other relevant factors.
11.2 In default, the Society will take necessary recovery steps including legal action, asset seizure, and auction of collateral. Penal interest and charges may apply for delayed or non-payment.
11.3 Service charges may be charged for processing fees, prepayment charges, late payment charges, and other services as appropriate.
11.4 In auction of collateral, communication charges and other charges may be levied.
11.5 The Society may charge minimum interest of seven days or Rs. 50, whichever is higher, for loans and credit facilities.
11.6 Interest on loans and credit facilities will be calculated on a daily reducing balance basis.
11.7 The Society reserves the right to revise interest rates and charges at any time as deemed appropriate by the Board or empowered Executive Committee.
11.8 Rates, charges, and terms shall be communicated to borrowers clearly and transparently.
11.9 A grievance redressal mechanism shall address borrower grievances in a timely and efficient manner.
11.10 Interest and credit policies shall be regularly updated based on market conditions, regulatory changes, and other relevant factors.