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 the security of any person who is not a member; Provided that with the special sanction of the Registrar, a society may make loans to another society. Provided further that the co-operative credit structure society may take own decision regarding its loan policies including individual loan decision to its members, keeping in view the interests of the society and its members. (2) Notwithstanding anything’s contained in the foregoing sub-section, a society may make loan to a depositor on the security of his deposit. Provided that a depositor member of the cooperative land development bank or a primary agriculture credit society under sub-section (3) of Section 45 shall be eligible for loans on par with other members.