Co-operation · Ch 5 — Credit Co-operative Society
Types of Credit Co-operative Societies
Types of Credit Co-operative Societies
Credit co-operative societies are classified according to where they operate and who their members are. The four types studied in the Std XI Co-operation course are the urban, the rural (agricultural), the agricultural in its wider sense, and the employees' credit societies. It is useful to see them side by side.
| Type | Area / Members | Main purpose |
|---|---|---|
| Urban Credit Society | Formed in towns and cities; members are traders, artisans, small businessmen and salaried people | Provides short- and medium-term loans for trade, small business and personal needs; encourages saving among the urban middle class |
| Rural Credit Society | Formed in villages; members are farmers, farm labourers and village artisans | Supplies cheap credit for cultivation and village needs, freeing farmers from the moneylender |
| Agricultural Credit Society | Members are cultivators of a village or group of villages | Grants short-term crop loans (for seed, fertiliser, wages) and medium-term loans (for cattle, implements, land improvement) |
| Employees' Credit Society | Members are the employees of a single office, factory, institution or department | Lends to fellow employees for personal and family needs; instalments are usually recovered directly from salary |
1. Urban Credit Co-operative Society. These operate in urban areas and serve the small trader, the artisan and the salaried person of the town. Their members deposit their savings and borrow for business or personal needs. When such a society grows large and begins to accept deposits from and lend to the general public, it may develop into an urban co-operative bank (studied in Std XII).
2. Rural (Village) Credit Co-operative Society. These are the oldest form in India, set up in villages to rescue the farmer from the moneylender. Every member is jointly responsible, which encourages honest repayment. They form the base of the three-tier rural credit structure — village society at the bottom, the district central co-operative bank in the middle, and the state co-operative bank at the top.
3. Agricultural Credit Society. Closely linked to the rural type, these specialise in the credit needs of farming. They give short-term (crop) loans repayable after the harvest and medium-term loans for cattle, pump-sets, ploughs and land improvement, so that farmers can invest in their land without falling into debt-traps. …
A credit co-operative society formed in a town or city whose members are traders, artisans and salaried people; a large one may grow into an …
A credit co-operative in a village that provides short-term crop loans and medium-term loans (for cattle, implements, land improvement) t …
A credit co-operative confined to the employees of a single office, factory or institution, recovering loan instalments directly …