Lending to individual members

Any Co-operative Bank, shall lend money to its individual members in the following cases :- (i) Where the individual member holds a current account in the Co-operative Bank, he may, subject to such terms and conditions as the bank may impose in accordance with the guidelines of RBI, be allowed overdraft for a period of not more than six months. (ii) Where the individual member holds a fixed deposit or recurring deposit account, he may, on the security of the deposit, be allowed loan not exceeding ninety per cent of the amount so held. (iii)Subject to such terms and conditions as it may impose, a Central Bank may lend money to its non-member depositor under Sub-section (2) of Section 61, on the security of his deposit. (iv) Co-operative bank may finance loan to its members and other institutions including Government undertakings, autonomous bodies Govt. Department and sugar mills having Government guarantee, with the permission of Registrar in accordance with the norms laid down by NABARD/RBI. Provided that the loan shall not exceed ninety per cent of the amount held as deposit in the bank.