In these kind of loans following topics are included:

  1. Agriculture | Animal Husbandry
  2. Business
  3. Small Enterprise
  4. Fruit Farming | Fish Farming | Poultry Farming | Beekeeping | Mushroom Cultivation
  5. Small Industry

Depending on the scope of business, commercial loan up to Rs 5,00,000 is given. In case of investment, loan up to Rs. 30,00,000 can be given, however, depending on organizations share capital, loan amount more than 10% cannot be invested. The time-period of loan is from 3 years up to 5 years. For this kind of loans, the payment is taken in installments referring to the payment schedule for the particular business. 1.5% interest is taken by the organization as service charge.

In these kind of loans following topics are included:

  1. Real Estate and Construction
  2. Personal Comportment, Religious | Cultural Conduct, Marriage, and other important Ceremonies.

For Real Estate and Construction loan up to Rs. 30,00,000 can be given, and for other activities loan up to Rs. 2,00,000 can be given. The time-period for this kind of loan is 2 years. The interest rate for such kind of loans is as pointed by the operation management of the organization. The payment is done every month in installments.

  1. In this kind of loan, credit is given for motorcycle, scooter, bus and other vehicles. As, the organization’s capital increase, investment on bigger vehicles can be done.
  2. The organization invests up to 60% of the vehicles cost only after the individual deposits 40% of the amount.
  3. For this type of loan, until the payment is completed, the bill-book is in the name of the organization. After all the payment installments, the organization will pass the bill-book in the name of the person.
  4. The payment is done in monthly installments.
  5. If the payment is not done for 3 months continuously, the organization can seize the vehicle.
  6. From the loan provided, insurance of the vehicle is done.
  7. From the loan provided, tax for the vehicle is paid.
  8. In case of accident or theft of the vehicle, all the expenses are to be made personally.
  9. Interest rate of 1.5% is taken by the organization as service charge.

In sensitive situation where unexpected events occur within family or personal life, emergency loan can be provided. The cases in which emergency loan is provided may be accidents, demise, flood and other natural disasters.

By keeping fixed deposit as collateral, one can take loan against fixed deposit up to 90% of the amount in account. When this kind of loan is taken, members have to pay additional 2% interest to the fixed deposit interest rate. However, unlike other loans one does not have to pay service charge.

The right to approve the loan:

The right to approve the loan can be given according to specification delegated by the board of directors.

  1. Loan up to Rs. 5,00,000 can be accepted by the management
  2. Loan up to Rs. 10,00,000 can be accepted by sub-committee
  3. Loan above Rs. 10,00,000 can be accepted by the board of directors
  4. In any case of loan acceptance, the procedure of loan transaction must be properly done

If the loan is not returned properly due to improper proceeding of loan transaction, the authority who accepted the loan is liable for this situation.