Credit Co-Op. Societies in India
In India credit co-op. sector developed to help the peoples of low income group whom banks generally do not gives loans because of risk, they are taking loans from the financiers at high interest rates. So society is the better option to help them. Society generally gives a wide range of banking and financial services like Loans, F.D., R.D., Saving, Insurance etc.. Generally Co-operative Credit Society is formed by members, who are at the same time the owners and the customers of their Society.
What Exactly the Society does in India
Credit Co-op. Society in India has a big role to play in economical development of Low class and middle class peoples. Generally this societies are resisted under District registrar office of state with Registrar of co-op society.
Big Multi State Societies Once Registration process is completed, They appoint Agent for collection of deposit. Some society also start MLM System in Society for deposit collection. All Big Multi State society like Aadarsh credit co-op, Sahara Credit Society etc. appoint agents to collect the deposit.
After registration of society the big decision is to buy Best Software for society. Generally most of the Societies buyVayak Software because this company has maximum experience in the field of society's computerisation in India
All credit Society than starts Deposit schemes like Member, Saving Account, Compulsory Saving, Fix deposit (FD), Recurring Deposit (RD), Monthly Recurring (MR), Daily Deposit (DD), Pension schemes etc. After collecting money from depositors theystart giving loans with name Housing Loan, Vehicle Loan, Gold Loan, Festival Loan, General Loan, Consumer Loan, Agriculture Loan etc. and decide the Loan EMI. This Societies give high return on deposits schemes and give loan at reasonable rate of interest as they have low running cost and every year declare Dividend for its members.
RBI and Nabard give heavy fund to all agriculture society to give loan for farmers at very low rate of interest
Employees Society generally starts for Welfare of their employees. This is a society registered for the staff of a company or a department of government. Examples of Employee Societies are as under Teachers co-op Credit society
State Electric Board Employee co-op Credit Society
Telephone Department Employee Co-op. Society
Government Department Staff co-op. Credit Society
Postal Department Employees society
Insurance Co. Employees welfare Co-op. Soc.
Bank Staff Co-op Credit & consumer society
District & Tahesil Panchayat Staff co-op. society
State Transport Department Staff co-op. Society
Industries Employees co-op. credit & consumer co-op. society
University Staff co-op. Credit society
Military Staff co-op Credit Society
Police & SRP Employees co-op. Society
What is the difference between co-operative Society and a business enterprises ?
Co-operatives are enterprises that put people at the center of their business, not capital. Co-operatives are business enterprises and thus can be defined in terms of three basic interests: ownership, control, and beneficiary. Only in the co-operative enterprise are all three interests vested directly in the hands of the user. Co-operatives are also enterprises that follow a set of principles and values.
Co-operatives put people at the heart of all their business. They follow a set of values than those associated purely with making a profit. Because co-operatives are owned and democratically-controlled by their members (individuals or groups and even capital enterprises) the decisions taken by co-operatives balance the need for profitability with the needs of their members and the wider interests of the community.
Objective and Working of Society
Vision of Society
Vision of Society is social and economic betterment of its members. As well as secure interests and objects of the society and member both. It is also Seen as Mediator between two persons, One person having excess money keep deposit in society as F.D., R.D. etc. and other one is the person who need money for some thing as a loan.
Development of Society
In India Co-op. sector is developed Sp. In Western India. Gujarat & Maharashtra are the states where co-op. movement is very good following the real aim of co-operation to the members. In other state development is slow.
Co-operatives are social enterprises formed by the members, for the members, of the member.
In fact, the Co-operatives can be found in all traditional economic sectors, including agriculture, fisheries, consumer and financial services, housing, and production (workers' co-operatives).
Ownership of Credit Society
Cooperatives are owned and democratically controlled by their members, Co-op members elect their board of directors from within the membership.
Social Impact of Credit Co-Op. Society
Are motivated not by profit, but by service-to meet their member's needs or affordable and high quality goods or services.
Profit of Society - Dividends
Society gives dividends on the share to the members depend on the profit.