Multi State Co Operative Society Registration
Credit cooperative society registration is basically registering credit cooperative society according to the legal documentation and with a group of people who have the same motive. Society Registration is very important for credit co-operative society
The credit cooperative society is one of the types of cooperative society and is a part of a multi-state co-operative society. For download a form 1 of a multi-state co-operative society visit to the official website of MSCS.
A credit co-operative society is a credit society that is a member-owned financial cooperative and is controlled by its member.
The motive of promoting the economy and society is key for credit cooperative society registration is providing credits at a reasonable price and giving financial services to its members.
The credit cooperative society registration includes fewer documents compared to others. Also, these societies do provide loans to their members for economic and social growth. The types of loan they offer:
- Personal loan
- Home loan
- Credit line
- Equipment Financing
- Business loan
- Mortgage loan
What it does?
They are formed to give financial support to members.
Their chief role is to conclusively preserve the rights of producers and consumers (Rural people).
Acquires deposits from members.
They tend to eliminate additional profits of middlemen in business and trade.
Provides loans to the member at reasonable rates of interest. ( Home loan, personal loan, vehicle loan etc.)
The way of credit cooperative society registration :
- Certificate from the bank declaring the credit balance is in support of the respective credit co-operative society.
- Every state must have a minimum of 50 members.
- The board members should be at least 7 and maximum 21.
- The promoter members name and list.
- No Objection Certificate (NOC) of the intensive inquiry letter.
- 4 copies of Model bye-law.
- All the details and copy of the pre-registration meeting judgement. That includes the capital, members, the board, and the operation etc.
- The recommended name by the members of your credit cooperative society.
- Details of head office address to be registered.
- A document in writing comprising of detailed plan format that how credit-cooperative society is useful for the economic and social development of its member and community.
What is the benefit of Credit Cooperative Society Registration?
The credit co-operative societies have a key role in spreading a sense of self-sufficiency. They think about the economic welfare amongst rural section which is a less developed section of the society. They have a great feature of balancing the business units stability with the belief of serving the members with the honest motive of achieving financial security. Society registration is very important and mandatory for its formation.
- The Credit Co-Operative Society is formation is easy. 10 or more adults can connect mutually to build society. Also, credit cooperative society registration is easy and comfortable. The best part is not too many legal formalities one have to keep for its formation.
- There is no membership obstacle unless especially denied. The membership of such a society is free for everyone. There is no barrier on the basis of gender, creed, colour, caste or religion. Any person can enter into society anytime and become its member.
- The liability is limited in the formation of a credit cooperative society. The liability of a member is restricted to the extent of contributed capital by him/her to society. This is good for the members as in case the society faces any loss, the members do not have to think about losing the personal assets and property.
- Credit co-operative society – Completely govern by elected members among themselves. Everyone has the same rights in all manners. They can take part actively in the development or revisions of society’s policies. This proves that all members are equally important and the credit co-operative society is democratic management.
How is the credit cooperative society registration under a central government safe for investments?
The following points will let you know that the credit cooperative society registration under a central government safe for investments :
- The society was established in the 2002 act. A credit society is a group of corporate. It supports people collectively by merging the resources, fund to the weaker sectors of the economy such as rural area people.
- Its chief purpose is to give credit facility to various states. It has a financial general formation which works mutually. For the progress of businesspeople.
- It is Registered under the central government. The by-laws should present for the economic and social progress of the cooperative society.
- The advertisements, reports, plans are circulated by the Central bank to state cooperative banks.
It’s safe under central government as the government is involved at all levels. The complete list of credit cooperative societies is accessible here: FILE
