write a short note on cooperative credit society?

Cooperative credit society is a financial institution which provides financial assitance to its members . Genreally the intrest charged is less compared to other sources of financial institutions.

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Cooperative credit society is a society that delas in credit woth the people i.e. they grant credit to the poor and the needy so that these people can at least fulfil thaeir daily needs. The people absolutely feel safe while taking loan as these societies surely have a legal status. The procedure followed by all of them is almost the same just their is the difference in the type of these. We can broadly divide these into :-

(1) Agricultural Credit Society -These societies give their prference for loans only to those who own a farmland. Since we know that they provide loan on a very cheap interest as by other formal sectors as well as the zamindars. Their sole income comes from the interest after which the amount is returned to them.

(2) Non-agricultural credit Society - These societies give preference to those who are in need of money excluding those who own farmlands. The rest things are same as that of the agricultural society. From here we reach to some common objects of both the tpes of coperative societies:-

(1) To get rid of the pressure of the money lenders.

(2) To provide the financial facilities for short term to its members.

(3) To keep the minimum rate of interest on loan.

(4) To develop the habit of thrift and saving among the members.

(5) To encourage the habit of mutual aid.

Hope it helps!!!

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