Regulation of loan making policy

(1) No society shall make a loan to any person other than a member, or on the security of its own shares, or on security of any person who is not a member: Provided that with the approval of the general body, a society may make loans to or accept deposits from another society of its classification which is not its member. (2) Notwithstanding anything contained in the foregoing sub-section, a society may make a loan to a depositor on the security of his deposit.