What is credit cooperative society?

A credit cooperative society is a society which takes care of the welfare of society. These societies are there to help you out with financial support. The primary role played by the credit cooperative society is that it safeguards the rights of producers and consumers in Rural areas. They acquire deposits from the members of the society and remove any middlemen making profits in business and trade. They provide home loan, personal loan, vehicle loan to the members at a lower and reasonable rates of interest.

There are primarily three Credit Cooperative Society that is

• Primary Credit Cooperative Society

• Central Credit Cooperative Society

• State Credit Cooperative Society

The Primary Credit Cooperative Society are organizations that are borrowers and non-borrowers working for a specific locality. Membership for the residents helps in business affairs of the society.

Members of bank unions taking care of the primary resources of societies comprise of Central Credit Cooperative Society. People from Central co-operative banks can become a part of credit co-operative society.

State credit Co-operative Bank society is formed for saving deposits with the help of the contribution of wealthy urbans. They are middlemen between the joint-stock banks and the cooperative associations.

What is Indian cooperative credit society?

Talking about Indian Cooperative Credit society,  one of the true and well known co-operative credit societies in India are becoming renowned in the regions including Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Union Territories such as Pondicherry and Silvassa. There are currently 10,000 advisors working along Indian Cooperative Credit Society Limited, in Kerala. 

I will provide a link to the Indian Cooperative Credit Society Limited so that you can have more knowledge about them.

I hope you now know what is credit cooperative society.

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Cooperative Credit Societies, often referred to as Credit Cooperatives or Co-operative Banks, are financial institutions that are owned and operated by their members. These societies are formed by individuals or groups with a common interest, mainly for the purpose of providing financial services to their members. They follow cooperative principles and are based on the values of self-help, mutual assistance, and democratic decision-making. So this is the credit cooperative society meaning.

What is the purpose of a credit cooperative society?

The purposes of a credit cooperative society are:

• They collect deposits only from their members

• Their aim is to provide financial assistance to their members

• Quite often, they minimise intermediaries’ profits in trade and business

• They provide loans with low-interest rates

• They are responsible for preserving consumers’ and producers’ rights

This is the credit cooperative meaning and purpose that I know of.

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I have a friend who I met on one of my trips to my village. A few weeks ago he told me that he and his fellow villagers wanted to address the financial challenges they faced in their community. They decided to form a Credit Cooperative Society to meet their credit and savings needs. But he needed my help in making the people of the village understand the meaning of credit cooperative society. I was obliged and I went to help him right away. Let me tell you how I explained about credit cooperative society to the villagers.

What are cooperative credit societies?

A Credit Cooperative Society in India is a financial institution that operates on a cooperative basis and provides financial services to its members. It is regulated by the Cooperative Societies Act of the respective state and functions with the objective of meeting the credit and financial needs of its members.

Here are some key characteristics and features of India credit society:

1. A Credit Cooperative Society is formed by a group of individuals who come together voluntarily and pool their resources to form a cooperative organization. The members have equal rights and responsibilities in the society's governance.

2. The primary purpose of a Credit Cooperative Society is to cater to the financial needs of its members. It aims to promote savings, provide credit facilities, and offer other financial services to its members at reasonable rates.

3. Members of a Credit Cooperative Society enjoy limited liability, meaning their personal assets are protected from the society's debts and losses. This helps mitigate risks for individual members.

4. Membership in a Credit Cooperative Society is typically open to individuals or entities who share a common interest or profession. 

5. Credit Cooperative Societies follow the principles of democratic governance, where members have the right to vote and participate in decision-making processes.

6. Credit Cooperative Societies provide a range of financial services to their members. This can include accepting deposits, providing loans, offering savings and investment schemes, and facilitating financial transactions.

7. Credit Cooperative Societies adhere to cooperative principles, such as voluntary and open membership, democratic control, equitable distribution of surplus, and concern for the community.

8. Credit Cooperative Societies are regulated by the Cooperative Department of the respective state government. 

I hope I was able to explain to you the meaning of credit cooperative society.

Hey Buddy,

A cooperative credit society is characterised by Section 5(ccii) of the Banking Regulation Act, 1949 (AACS) as a cooperative society "the major goal of which is to offer financial accommodation to its members and includes a cooperative land mortgage bank." The institutions mentioned here are thrift societies. A primary credit society and cooperative credit societies differ from one another in terms of their line of operation.

After understanding the credit cooperative society meaning, let us focus on the list of societies.

In India, there are numerous credit cooperative societies. Some of them are:

• Adarsh Credit Society

• Sahara Credit Society

• Prithvi Credit Co-operative Society

• Navjivan co-op Society

• Arth Multistate credit Society

• Sanjivani Credit Society

• Lokhit Bharti Credit Co-op. Society

• Peers co-operative Society

• Kheteshwer Credit co-op. Society

• Arogya Dhan Varsha Credit Society

A spirit of self-sufficiency is increasingly being propagated thanks in large part to credit cooperative societies. They consider the economic well-being of the less developed rural sector of the population.

They excel at striking a balance between the business units' stability and the conviction that serving the members is the only sincere way to achieve financial security. It is necessary for the formation of a society to register.

I would like to conclude my discussion here about cooperative credit societies. I hope this helps:)

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Hey there,

We all hear a lot about a credit cooperative society these days. But it was quite recently that I got to understand cooperative credit society meaning fully and some credit for making me understand about it goes to Mr. Rohan too. My friend had recently joined a credit cooperative society and that intrigued me to know more about it. 

After getting some information about a cooperative society from my friend I stumbled upon the response by Mr. Rohan. I could understand cooperative society even better and his response also increased my curiosity to know about it and join a credit cooperative society myself some time. So, I did some research myself and I would like to share what I could understand more about a credit society meaning.

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A credit cooperative society as we already know is a group of people, usually belonging to the same class, who come together to achieve a common goal in terms of economic, cultural or social objectives through a business that is owned and controlled by the members of the society. 

• A cooperative credit society aims at providing goods and services like loans, goods at discounted prices, and so on, at an affordable rate to its members. 

• Another main function of such societies is to eliminate any middlemen by providing goods and services directly.

• These societies also serve the function of preventing the exploitation of the weaker members of society.

• Such societies also protect the rights of producers as well as the consumers by keeping a track of the prices of all goods and consumers.

• They also aim to create a more sustainable food system.

• Housing societies also serve the purpose of empowering the vulnerable section of society by offering houses at affordable rates.

• They function by keeping the environment in mind.

I hope I was able to impart some of my knowledge of cooperative credit society meaning along with Mr. Rohan’s answer.