Credit co-operative society is another one from those small-loan financing institutions. When the banks and other institutions failed to get the proper financing system in the rural sector then the people decided to help each other out and avail finances for each other. In the last decade of the Indian economy, the credit co-operative societies have been in a boom. These societies have been in those corners and areas where even the banks were not able to set up.
A credit cooperative society is a cooperative society that is a financial cooperative owned as well as controlled by its members. It is a great system under which people with the same background and trade come together and set up an institution to finance their business. This came into existence and is only possible if the members have the same trade and economic background.
Also, these societies do not lend to members who do not have the same trade and do not belong to the same economic background. These societies mainly consist of people who do not have too much money. Therefore, they come together to share the burden. Also, they belong to the same trade and economic background with the help of which they get to know about the basic Idea and knowledge whether the particular person would be able to pay back the loan or not.
As these societies don’t have other resources that are available to the banks and other institutions to get the knowledge about a person's financial capacity, therefore, they are only able to get the basic knowledge of the individual's financial capacity. However, these institutions are among the best financing institutions that are running in the country and providing financing to the rural sectors of India. These institutions have a mission to serve the interest of members in more than one state for social budgetary enhancement of its members and are therefore referred to as a multistate cooperative society.
1. Credit Cooperative society
These are the societies that accept deposit and provide loans to the members at reasonable interest rates. The main aim is to develop the habit of saving among members. Also, the process for the registration of a credit cooperative society is simpler and less complex.
2. Housing Co-operative
These societies help the people holding a limited income to construct the houses at a reasonable cost. They aim to solve the housing problem of the members. They themselves construct the houses and gives the option to the members that they can purchase the house even by paying the installments.
3. Consumer’s cooperative societies
These businesses are owned as well as governed by the consumer of a particular area for their mutual benefit. They aim to provide daily necessary commodities at a reasonable price and to provide service to the consumer.
4. Marketing Co-operatives
These societies are established with the aim of helping small producers. The members of these societies are only the producers who wish to obtain reasonable prices for their output. Various marketing functions such as warehousing, packaging, transportation, etc. are performed by the cooperative societies in order to sell the product at the best possible way.
5. Producer Co-operative
These societies are established to protect the interest of small producers. The members of these societies can be landowners, farmers, owners of the fishing operations. These entities are being set up to increase the marketing possibilities and production efficiency therefore, the producer decided to work separately as a separate entity. They perform activities like marketing & distributing their own products which further helps in lower costs and stains in every area and provide mutual benefit to each consumer.
A minimum of 50 members is required from each state for the registration of the multi-state cooperative society.
Minimum of 7 board members and a maximum of 21 board members are required to register a credit society.
Name of your multi-state cooperative society
Name of the members of the society with their ID proofs
Certificate from the bank stating that the credit balance is as per the requirement for setting up a multi-state cooperative society.
Copy of pre-registration meeting resolution
A detailed plan stating how cooperative society will be beneficial for the social and economic betterment of their members and community.
Name of the proposed multi-state society
List of people who contributed to the share capital amount they have contributed and the admission fee paid by them.
Address proof of credit co-operative society
The main objective of the credit-cooperative society
Certificating from the bank stating that the credit balance in favor of multi-state society.
Area of Operation of Multi-state Cooperative society.
Scheme showing the details stating that how cooperative society will be beneficial for the social and economic betterment of their members and community.