Ans.- Aavishkar souharda Multipurpose Co-operative Limited is a co-operative society, duly registered with Government of Karnataka, with registration no. -----------. Aavishkar Souharda multistate Cooperative Society Limited strictly abides by rules of the karnataka State Co-operative Societies Act, 1997 and doing finance business with the members of socity .
Ans.- The Society uses the funds in lending to the members and investments as per the societies act/rules/by-laws. Our lending is in the shape of small loans for Farmers/business & Micro Finance.
Ans.- Yes, because Government of India/Government of Karnataka has framed the laws/rules to ensure the security and safety of deposits and Aavishkar souharda Multipurpose Co-operative Limited strictly abides by the rules and regulations framed by Government.
Ans.- As stated elsewhere the Aavishkar souharda Multipurpose Co-operative Limited is registered under Multi State Co-Operative societies act and rules. Society is not a personal institution owned by an individual but is a fully democratic organization managed by Board of Directors who are elected by the members of the society in the Annual General Meetings and the Board Of Directors also take decisions in a collective manner with total transparency. The department of Co-Operation constantly reviews the functioning of the society at regular intervals.
Finance companies are usually owned by individuals and frame the so called policies according to the whims and fancies of the owners. The general members/ depositors/ Investors have no role to play. There are some possibilities for the absence of transparency. Members/ Investors have virtually no knowledge of the affairs/ legal provisions of N.B.F.Cs and the statutory liabilities of the N.B.F.C s are also limited.
Ans.- We believe in the principle of encouraging saving habits amongst our members. In the present context when tendency to save is on the decline and the consumerism is on the high. We want to ensure the financial and social well being of our members as a moral responsibility towards the Society. As a true nationalists we are convinced that higher the savings, higher the investment better the G.D.P.
Ans.- All those members who are keen to get better returns/interest on their deposits in short term, medium term and long term.
How The Aavishkar souharda Multipurpose Co-operative Limited. is able to offer Higher Rate of Interest as compared to the Rate of Interest of Commercial banks/ Financial Institutions?
There are varieties of natural and financial reasons which help the Aavishkar souharda Multipurpose Co-operative Limited in offering better Rate of Interest. A few of them are detailed below:
(a) Income earned by the society on account of Interest on loans/ advances granted to members which contributes a major part of society's Income is exempt from Income Tax as per section 80P of Income Tax Act. Therefore the Aavishkar souharda multipurpose Cooperative Society Limited is able to save huge amount which could have otherwise been paid as Tax. The Board of Directors of the society always felt that some portion of this should be passed on to the members by offering higher Rate of Interest and this is what our co-operative philosophy is.
(b) C.R.R. (Cash Reserve Ratio) : Banks and other financial institutions have to keep about 4 to 5 percent of their deposits in cash or with Reserve Bank of India as per R.B.I. regulations. Amount so kept does not earn any interest and reduces the banks' capacity of lending. While The Aavishkar souharda Multipurpose Co-operative Limited. is exempted from this provision Aavishkar souharda Multipurpose Co-operative Limited. keeps minimum cash in hand to meet the day to day requirements and therefore are in a position to lend more/invest more.
(c) S.L.R. (Statutory Liquidity Ratio) : Banks have to keep the almost 25 to 30% of their deposits in different type of securities which earn them less interest as compared to the Rate of Interest prevailing in the market.
(d) The Aavishkar souharda Multipurpose Co-operative Limited. is exempt from maintaining Cash Reserve Ratio (C.R.R.) & Statutory Liquidity Ratio. The Aavishkar souharda Multipurpose Co-operative Limited. has better opportunities of managing its funds and earning interest/profits thereon which it is doing sincerely and passing on the benefits of such income to its members/ Investors by offering better rate of Interest.
(e) Aavishkar souharda Multipurpose Co-operative Limited is extending short term & medium term loans to its members. Our loans are fully secured and our recovery is hundred percent. We have no N.P.A's in our books. On the other hand Banks' resources are adversely affected by large scale Non Performing Assets and as a result these institutions have lesser funds at their disposal and are not able to offer good Rate of Interest to depositors.
(f) As it is evident, banks spend huge amounts in the shape of misc. exp. And establishment cost. As compared to banks and N.B.F.Cs' our operational cost is very low and the benefit of this also is being passed on to the members in the shape of higher Rate Of Interest.
Ans.- One has to apply on a prescribed application form available from society office and submit the same along with required document to the society office in which member ship requests is made. After scrutiny of the request , application is informed about the outcome or the status of the applicant.
Ans.- Any Benefit or credit facility in a co-operative society is given only to Share holder of that co-operative Society. Hence its necessary to become a share holder to avail the benefit of society, like credit facility, death benefit, health benefit and profit in share( share dividend) etc.
Ans.- An individual who resides in the area of operation of society limits.( Area of operation permitted to Aavishkar souharda Multipurpose co-operative limited by GOVERNMENT Of KARNATAKA, REDGESTER OF CO-OPERATIVE SOCITY . Is entire state of Karnataka).
Including Raichur and bidar Districts.
Ans.- Administratively co-operatives societies are regulated by Register of co-operative societies and financial disciplines are exercised by R.B.I.
Ans.- Recovery of dues from defaulters is affected through Arbitration unlike the schedules/nationalized Banks through civil suits.
Ans.- Yes. Aavishkar souharda Multipurpose Co-operative Limited has made arrangements with other Banks through which Pay order/drafts/RTGS transfer can be effected throughout India.
Ans.- Co-operative Societies is promoted by the share holders. For their benefits and is governed by them exclusively. Whereas other banks are promoted by Government or Corporate Sector(s) for benefit of Public at large.
Ans.- A) Unsecured ( Personal ) Loan.
B) Secured Loan :-
> Agriculture Loan.
> Housing Loan.
>> Business Loan.
> Loan against Deposit.
> Over Draft facilities.