Introduction to project report:

This project report entitled the credit facilities in Shiva Credit Co-
operative Society, Honnali. This has been brought out to know the
customer’s or member’s opinion about the credit facilities provided by
the society. This project is also prepared to know the performance of the
society.

In the beginning of human existence, needs were simple and every

individual produced all that was necessary to sustain life, he provided his
own food of animal flesh and vegetable; prepared his own clothing and
found his own shelter.

After this state, barter system came into existence. Barter system
means trade with exchange of goods, with the absence of money. At this
stage the concept of dependency emerged in the routine life of the human
beings. And their dependency demanded co-operation that is how co-
operation was born.

In course of time, people settled down in different occupations,

and with specialization, exchange of goods became wider. And the
money was introduced in trading, which was widely accepted for
payment. As money started getting importance. Co-operation was going
hand in hand with it.

So, co-operation is an important thing, which plays an important

role in all for goods and services and in settlement of debts. Money is
given and received without reference to the standing of the person who
offers it in payment.
1
 According to D.H. Robertson “Money is any thing which is widely
accepted in payment for goods or in discharge of other kinds of business
obligations”. This is the way that money got extends into the co-
operation.

Objectives of the project report:

The follows are the important objection:
1. To make detailed study of flow of credit provided by the co-
operative society.
2. Effective utilization of service by the members.
3. To study the problem connected with the credit facilities provided
by the society.
4. To study establishment, growth and progress of service provided
by the society.
5. To know the general opinion of the customers about the society.
6. To express our own opinion about the society’s developing,
services to attract and hold the customers.
7. Togo into their depth about the problem faced connected with the
credit facilities provided.

Area of study:
“Shiva credit co-operative society” is located in Nyamathi road in
Honnale. Is selected and their information about the opinion towards the
society’s functioning are collected.

The project report aimed at giving analysis on credit facilities in

general and analysis of society from customer or members point of view
as the society this co-operative society is established in.
2
Methodology:
The data is collected for the preparation of this project report
includes both primary and secondary data. The primary data is that the
secretary of the society. Directors of the society and the society’s staff is
personally interviews to collect information about the credit facilities
provided by the society to the study.

Secondary data has been collected throng survey the survey was
conducted; questionnaire was prepared and passed to the selected
customers which reveal the customer idea about the society.

 Benefits of study:
1. We can get a clear idea about the credit facilities provided by the
society.
2. The report is helpful in knowing about the customers wants about
the society’s service.
3. The study given us to know the performance and growth of the
society.
4. By preparing this project report the study helps us in coming to our
own conclusion about the society’s and to write our own
suggestion for its improvement.

 Limitations of project report:

There are some limitations in doing project report, they are as
follows:
1. Here we cannot contact all type of customers.
2. Some customers will not give correct opinion about the survey.

3
3. Accuracy of this project report is limited because of factors like
limitation of time.

4
 CHAPTER-2
Concept of co-operation
Meaning:
Co-operation means working together to accomplish the common
goal through cooperative principles.

Co-operation is much older than the mankind. Formation of social

groups in outcome of reflective co-operation, while the life of the ants,
bees, wincer, etc, provides the best examples of initiative co-operation,
Right from the hunting age upto the present ager the progress and
development of human being in all spheres, social, economics, religions
and political is marked by a sense of thinking working together. In india
throughout the ages of people and the communities worked together on
an informal co-operate basis with regard to their religions, social,
economic and cultural life.

The word “Co-operation” is derived from the latin word “Co-

operari” mean to ‘to work’. In other words co-operation means to work
together to achieve common purpose. Co-operation promoter voluntarily
association of individual having common needs to combine towards the
achievements of common economic needs. If is recognized as a sector of
business enterprise quite distinct from public sector or private sector.

Definition of co-operation
Co-operation has been defined by different authorities in different
ways. Some definitions are as follows:

5
A. According to C.R. Fay: From socio-economic point of view
describes “Co-operation is an association for the purpose of joint
trading, organizing, among the weak and conducts always in an
unselfish spirit, on such term that all who are prepared to assume
the duties of members proposition to the degree in which they
make use of their association”.
B. According to Mr. Talmaki, he defined it as “An association of the
weak, who gather together for common economic need and try to,
if themselves and others out of weakness into strength through
business organization conducted for the common benefit of all who
join it”.
C. According to professor Lambert observes. “Co-operation as an
enterprise formed directed an association of uses, applying within
itself the rules of democracy and directly intended to serve both its
own members and community as whole”?
D. According to Mr. Calvert Definer. “It is a form of organization
where in the person voluntarily associated together as human being
on a basis of equality for the promotion of economic interest of
themselves”.
E. According to Dr. K.N. Katju, “Co-operation is self help as well as
mutual help. It is a joint association an enterprise of those who are
not financially strong and are enable to stand on their own legs, and
therefore come together not with a view to get profit but overcome
disability arising out of want of adequate financial responses and
thus better their economic condition”.

6
Co-operative Movement in india:
The co-operatives are the preferred instruments of socio-economic
development. Their contribution to the national economy of the country is
very significant. In the wake of declining role of public sector and
various limitations of private sectors, relevance of co-operatives is
achieving greater heights. In the emerging environment of capitalistic
form of society for their socio-economic development. Government is
also committee to provide policy support for the development of co-
operative sector in the country.

It is an acknowledging fact that the idea of co-operation was

popularized in this country through the state initiative and direction. Mr.
Nicholson who was deputed to his report provided the basis for the
government to stall the co-operative movement at the turn of the
cultivations from the crushing burden of indebtedness and to faster thrift
among the masses.

Initially, the government include local will do and highly respected

people to organize co-operatives in their area. The honorary organizers
who received support from local officers. The co-operative society’s acts
were passed in 1904 and 1912, to provide the necessary, legislative from
the functioning of co-operative instructions. The co-operative
departments were setup to regulate the working of societies through the
expected to be a government office different from the rest, the friend,
philosophers and guide to the movements.

7
 Gradually, the movement started diversifying its activities and
vertically integrated structure come in the field of co-operative banking,
marketing, small scale industries, consumer activities etc.

In 1919 co-operative was removed from the central list and made a
provincial (State) subject under the federal constitution. Vigorous efforts
were made by the govt. during the great depression period of the thirties
to save the movement. During the IInd world war, also the Indian co-
operative movement experienced URS and down till independence. The
co-operative in india has recorded by the tardy growth, inspite of the
morale and material support provided by the government.

According to co-operative commutes, this was due to the “…..faire

polias”. Persuade by the government. Thus, tile down of independence
the Indian co-operative movement had come to be described has not a
movement but only a government policy, observed that Indian cultivator
were provided by many lenders, thus tow above mentioned report is
called upon the state to initiate move vigorous & propose full measurer to
revitalize the entire movement. Almost by the same time, national
economic plan (IInd 5 years plan) was launched, in which, the
recommendations of this committee were fully incorporated.

The policy adopted immediately therefore, did not encourage’ a

radial re-organization of the structure but aimed at creating new condition
in which co-operatives could function more effectively for the benefits of
the weak and meet the opposition of the listed interests. According the
state become a major posture in the share capital of co-operatives at all
needs is credit processing, marketing, consumers activities etc the
8
government has provided aid and assistance to the co-operative societies
in india in the following manner.
1. State’s partnership in the share capital of co-operative societies.
2. Loan to societies
3. Subsides and grants
4. Guarantees
5. Contribution to risk fund
6. Tax concessions
7. Legal concessions and sanctions
8. Training and education
9. Help to reserve bank and other banking organization.
10.Supply of government officer on deputation.

In addition to this, researcher and surveys are conducted for the

benefits of co-operative and plans and programs are formulated for the
state. Co-operative department.

During all these years of co-operative development a paternalistic

attitude has been adopted by the state, towards the co-operative it
threatens to become more pronounced, mostly under pressure of need of
government’s sponsorship for expeditions development and for removal
of poverty and backwardness the constitution of india has provided
guidance for the state in such away that it can take a positive attitude for
the development of co-operative sector.

9
Co-operative organization:
Meanings:
A co-operative organization [also referred to as a co-op] is a form
of business ownership that consists of a group of people who have joined
together to perform a business function more efficiently than each
individual could do alone. The purpose of a co-operative organization is
not to make a profit for itself. But to improve each member’s situation.

However, members of certain types of co-operative organization do

make a profit by selling their product and / or service to customers who
are not co-operative organization members.

Definition:
The internal labour organization definer a co-operative as “an
association of persons, usually of limited, means, who have voluntarily
joined together to achieve a common economic and together the
formation of a democratically controlled business organization making
equitable contribution to the capital required and accepting a fair share of
risks and benefits of the undertaking”.

According to Prof. Poul Lambert, a leading authority on co-

operation state. “A co-operative society is an enterprises formed and
directed by an association of users, applying within itself the sales of
democracy and directly intended to serve both its own members and the
community as whole?

10
Feature of co-operative organization:
Following are the features of co-operative organization.
1) Voluntary Association: “A co-operative society is a voluntary of
persons not of capital”. Any of person irrespective of sex, creed,
caste, etc can join the society of his wish and he can leave it at any
time after giving the notice to society. While leaving he has to
withdraw his amount and he it not suppose to transfer the amount
on other persons.
2) Source of finance: The capital of co-operative society is raised
from the members by way of share capital since co-operatives are
organized by relatively weaker section of society, the share capital
is limited.
3) Control and Management: Democracy is the Keynote of the
management of the co-operative society since most of these
societies operates on a local scale, the meetings of the member are
generally well attended. Al time of meetings the members select
the managing committee and lay down the policy which it must
follow to promote their common interest, each member, what ever
be his state in society, has one vote and hence an equal rights to
participate in the management of society. Members cannot vote by
proxy. Beside the organization the organization and control of a
co-operative society may be carried on by 2 member working in
different capacity and outsiders may be employed only when the
society grows too large.
4) Service motive: A co-operative society is organized primarily with
the object of rendering maximum service to its members in certain
field. It doesn’t aim at the cost of its members for it is formed
basically for providing certain essential facilities to members. This
11
 doesnot mean that a co-operative society will have work for profit.
It is quite usual for society to earn profit by extending their service
to max-members.
5) Disposal of surplus: It is usual for commercial concern to distribute
profits among the owners in the ration of their capital distribution
or in agreed ration. A co-operative society differs from trading co.
in this respect. Under the co-operative form of ownership and
organization, surplus arising of a year working is given to the
members not directly or divided on share held by each of them. But
in the form of a bonus which need not be proportionate to their
respective capital contribution.
6) Fixed return on capitals: The fixed or limited return on capital
subscribed to the society must be paid out of the surplus to the
members. “Making payment of fixed interest or paid up capital
definitely a first charge on the trading surplus, of all those who
joined the society a solid reason for leaving their savings in
deposits with it”.
7) State control and co-operative status: Although voluntary in their
basic character the co-operative society are subject to considerable
state control and supervision. In india the co-operative society act
as the case may.

Types of co-operative society:

Co-operatives may be formed basically in any work of life. Some
of them concern themselves with the moral and social uplift of a
decreased or weak section of the society. White quite many of them
combine some business activities with service to their members. Since
business are being consider here as a force of business organization only
12
there societies which are concern with business purpose need on
introduction here the principal types of co-operatives are as enumerated
below;
1. Consumers co-operative society.
2. Producers co-operative society.
3. Marketing co-operative society.
4. Housing co-operative society.
5. Co-operative society credit societies,.
6. Co-operative society forming societies.

1. Consumers co-operative society:

These societies are formed by the ordinary people for obtaining
their day-to-day requirements of goods at cheaper prices. For this
purpose, consumers co-operative stores are recognized by such
societies these societies make their purchase in balk form wholesales
at wholesale rates and sell the goods to member at market price. The
difference is presented by the surplus which is distributed among the
purchasing members in the form of …….on purchases. This is the
oldest form of co-operative organization.

2. Productions co-operate societies:

It is also called as industrial co-operatives societies are voluntary
association of small producers formed with the object of eliminating
the capitalist form the system of industrial production. Some timers
consumer’s societies may join hands with the association or
producers. In such a case the firm “co-operative societies” is used for
societies of this type. These societies produce goods for meeting the
requirements of the consumers, sometimes thus production may be
13
 disposed of to outsiders at a profit being, distributed among the
producers after marketing agreed percentage for welfare and general
purpose.
3. Marketing co-operative society:
The marketing co-operative society or the co-operative sales
societies are voluntary association of independent producers organized
for the purpose of arranging for the sale of their output. As the central
sale agency for a member of producers a marketing co-operative quite
after performs such important function of marketing as, processing
and grading of the produce delivered by the individual producers.
According to their contribution to the pool. Societies of these kinds
are particularly useful for agriculture, small producers and artesians.

4. Housing co-operatives:
Housing co-operatives are the association of persons who are
interested either in recurring dealership of a hours or obtaining
accommodation at fair and reasonable rent such societies are formed
in urban areas. Mostly intending, builders of hours join together to
form co-operatives of this kind. Through, there societies they can
secure not merely financial assistance but also the economics of
purchase of building materials in bulk the membership of such a
society may be thrown open to all those who are already to deposit
money in the society for interest. Each member has to buy atleast one
share and the liability is generally limited to his contribution.

5. Credit Co-operative:
The co-operatives credit societies are voluntary associated of the
people with moderate means formed with the object of extending short
14
 term financial accommodation to them and developing the habit of
thrift among them the funds of these societies consists if share capital
contributed by the members the liabilities of the members are in
generally unlimited this helps the society in rising funds from
outsiders and ensure that every members shows keen interest in the
working of the society in granting loans the society may show
consideration for the poor people who apply for smalls loans. Besides
loans may generally be granted only for productive purpose the
society may or may not ask for security of immovable property while
making loans, the rate of interest charged in borrowing members is
kept as low as possible.

Credit facilities may be divided in to two types they are:

A. Agriculture Credit Society: They generally confi its activities to a
particular village.
B. Non-agriculture credit society: These societies are meant to provide
bank accommodation to the members and may be formed by a small
artisans in towns and try office clerks mill workers etc in cities.

Organization and working of primary credit co-operative

society:
The primary co-operative credit society is supposed to be an
“Association of borrowers and non-borrowers who, residing in a locality
know each other and take interest in one another”. Primary agriculture
co-operative society can be started in a village by ten or more members.
Membership of the society is opened to any person in the locality
provided his membership is approved by the fellow members. While
admitting a new persons his character (regardless or caste and creed) is
15
taken into account this is supposed to faster the spirit of co-operation and
mutual help among members. Area of preparation of primary agriculture
society is supposed to be restricted to compact area preferable a village,
or a group of small village where every persons knows a practically
every other person of locality, the idea behind this is to facilities granting
of loan to really needy person and effective specification of the use of
loan given.

The primary agriculture co-operative society is the basic unit of the

co-operative credit organization. This is because it is on the foundation of
basic unite established at the village level that the entire foundation of co-
operative credit structure is erected and II ndly because, It is the primary
co-operative credit structure is erected which comes in direct contact with
the agriculturist giving them loan and collecting repayment of loans from
them.

In case of primary credit co-operative society members contribute

to share capital, each members is required to purchase a minimum
number of shares. It is also laid down that no member would hold share
beyond a maximum nor of shares pres gribed & each member has only
one vote for the purchase of electing official to various post in society,
irrespective number of shares the member holds. Thus is meant to ensure
democratic management. And control of primary society. These shares
are also exempted from attached by court of any dues in civil suit or in
insolvency proceedings the liability of members is unlimited.

As regards, administrated of primary co-operative credit societies,

there is general body consisting of members of society. General body
16
elects annually the president or chairman, secretary and other members
of management who all work in honorary capacity. Generally the
accountant is a paid employee of the society.

17
 CHAPTER – 4

Co-Operative Movement on Aid to Common Man:

Man is a social animal, he always live together with others. He
need groups. He cannot be left in isolation. Human being work together
thinks together and lives together the entire human society is based on
mutual understanding and co-operation.

As you know that India as a vast country. It is a country of villages

more than 70% of the people live in villages. In villages people of
generally uneducated and they don’t have any idea of the outside world.
Every family in village is dependent on agriculture. Agriculture is their
main occupation and through which they have to satisfy their basic needs
like food clothing and shelter.

Since during olden days the small formers or the peasants of India
are suffering from many problems. The main problem to them is food,
clothing and shelter. They all depend on agriculture to satisfy all these
needs. Agriculture in India is depend on “Monsoon” which is uncertain
and which is playing with lives of our frames and peasant. When
monsoon use to fail the crops will be washed away with the floods. Thus
formers and peasant were played by the monsoon. During the failure of
monsoon former and peasant used to suffer a lot. They felt difficulty even
to satisfy their basic needs. At this time the former or the peasant used to
go to “ZAMINDARS” or “LANDLORDS” to ask for help the zamindars
and landlords are god to them. They are to grant the former loan at a very
high rate of interest after pleading the lands from the formers. As the
peasant and formers had only way, they used to agree the conditions of

18
zamindars. After granting loans zamindars used to give them strict
instruction that if the formers fail to repairs the loan back either the
zamindar will take over the land or former has to work free of cost at the
land or house of zamindar.

So farmers wants themselves to make free from the clutches of

zamindars. During this time the theory of co-operation was introduced all
over the country. A person called “Mr.Nicholson” who was deputed to
recommend measure to cultivate the suffering of farmers. In they year
1898, he recommended institution of co-operation to bring people
together to help themselves then the formers felt that they should also
make a co-operation, they should also work for each other then farmers
and peasants with some ideas and common interest joined themselves by
making a group of them and contributing some amount into the co-
operative society for each other then the farmers and peasant with some
ideas and common interest joined themselves by making a group of them
and contributing some amount into the co-operative society for the
welfare of themselves. They were aware of advantages of co-operation
the use of utilize of the accumulated funds for the purpose of getting
loans at a very low interest when compared to landlords and without
pleading anything or with pleadging some thing they also formed the
formers co-operative society in which all formers of village used to
accumulate the crops and they used to sell them to the market and share
profits and losses with in themselves. By the introduction of co-operation
of farmers and peasants are now fee from clutches of the landlords and
they are loving a happy and comfortable life they have realized that
“Unity is best policy”.

19
 Not only to the formers even to the middle and high class people
realize the need of co-operative society. It is helpful all aspects like
industries, banking, clubs etc it is very useful to every persons or
individual either he may be an industrialist a professional or a
businessman people of every class in modern days are farming their own
group or societies with the help of principles of co-operation by making
their and others dreams come true.

Many SSI are suffering from the competition of large scale and
other SSI. But now after knowing the principles the medium and LSI, by
making organization or co-operations of them they all work together for
achievements of their common goods, not only SSI but also medium and
LSI also can compete with other companies or with more bigger
companies or with international companies by making their co-operative
they decided terms like price, quantity etc. and they all put their gathered
efforts to compete with other bigger or international companies, with no
difficulty.

Even a common man can over come his problems by joining

himself or by becoming a members of any co-operative societies.
Common man can enjoy his life and he can overcome problems and
modern man has to utilize his opportunities by joining into the co-
operative he can get any types of help from the co-operative.

Thus co-operative societies play an important vital role in changing

or giving an “AID TO THE LIFE OF COMMON PEOPLE”.

20
 CHAPTER – 5

SHIVA CREDIT CO-OPERATIVE SOCIETY LTD.

HONNALI

A) A Profile

B) Source of Fund

C) Lending of the Society

D) Management of the Society

E) Progress of the Society

21
A Profile:
The “SHIVA CREDIT CO-OPERATIVE SOCIETY” is a co-
operative society, which is registered under “KARNATAKA STATE
CO-OPERATIVE SOCIETY ACT of 1959 column-4”, established on
31.07.2000 has completed its useful of a 9 years in Honnali.

History of the Society:

Before 2000 in Honnali, there were only two or three co-operative
societies which were also not concentrated on giving credit facilities
(credit flow) and financial aid to the people. In such a situation, a few
leaders of community firmly decided to establish a co-operative society
by keeping aside their own personal work. Some of the persons who
initiated for the establishment of society were:
1. M.G.Virappa gowda
2. T.Shankarappa
3. D.G.Shanthanagowda
4. D.Thirthalingappa
5. H.Haleshappa
6. M.Siddappa
7. K.V.Manohar
8. A.G.Chandrashekar
9. K.G.Someshekarappa
10.H.P.Rajashekar
11.K.S.Hiremane Naik
12.T.G.Sowbaghya

And other important persons who went to many nouses in public

and made people to join the society and collected Rs.100/- for each
22
share of the society and on “31 st July 2000” the society was retgistered
under the name “SHIVA CREDIT CO-OPERATIVE SOCIETY
LIMITED”

Successful Evaluation of the Society:

In the initial stage itself, the Shiva Credit Co-Operative Society has
collected the share amount of Rs.4,00,000 at Rs. 100/- per each share
and Rs.1,58,65,856/- as deposit money and it had given a loan
Rs.64,73,254 to its members. Total transaction was Rs.5,29,99,834.
The first year the society gave 7% profit to their members on their
members. A significant feature of this society is that it has gained
profit, which is this area no other society has achivied in its very first
year. Due to the efforts of the elders, the society earned tood profit.
Form 2000-01 to 2003-04 the Shiva Credit Co-operative Society was
functioning in the premises of “TAPCS COMPLEX” opp. Vetornory
hospital Honnali”

From 2003-04, this Society purchased its own building where it is

presently located at the cost of Rs.3,38,360.

The Shiva Credit Co-Operative Society developed day by day

because of our bribe’s sincere and impartial service. It conducted the
“Annual General body Meeting” on 22.09.2001 under the
presidentship of shree “A.G.Chandrashekar”. In that year, there were
2900 members. Rs.3,49,000/- was share capital, and it has collected
the deposit amount of Rs.19,72,900/- It has provided loan of
Rs.1,25,000 for the improvement of the members business and

23
50,66,255 for self loans. The total transaction of the society was
Rs.29,99,834/- the society has not made any loss in this year.
In 22.09.2002 it conducted its 2nd annual general body meeting and
the members were discussed about the incomes and expenditures
profits and losses and the budget and loans and advances during their
year its total transactrion was Rs.5,42,70,995 and during this year
competerisation of transaction was adopted.

And in the year 2003-04 it conducted 4th Annual General Body

meeting at 23.08.2004 at “GURU BHAVAN HONNALI” during this
year it collected Rs.86,000 share amount from the public and
Rs.2,40,41,702 deposits and gave Rs.81,48,476 loan various types of
loans to its members as well as to the public of the Honnali. The
presidentship during the year was “D.Thirthalingappa”.

At 2004-05 with the presidentship of “Shree d.Thirthalingappa” the

society celebrated its “Silver Jublee” (General Meeting) at 22-09-2005
at the venue “GuruBavan” Honnali. In that financial year there were
234 members joined to this society and totally 3558 members
transacting with the society during that year 1,53,000 share capital
was collected from members at the end of the financial year
Rs.44,73,000 share capital was collected upto Rs.133 lakhs of
different schemes of deposits were held in this society and society
attained 7.71 lakhs of profit during the year. At the same time society
introduced “SAFE LOCKER SYSTEM” to the members and
customers and it had made Rs.8,56,21,851 of total transaction and the
total dividend was given at the rate of 6% to its members.

24
 In the year 2006-07 it celebrated “Golden Jubilee” under the
presidentship of Sri Haleshappa at 27.09.2007 this year the Shiva
Credit co-operative society collected share capital of Rs.2,13,000 from
members and at the end of financial year Rs.46,22,000 lakhs share
capital was contributed. There were 67 members joined the society
and 86 members got retirement totally at the year end there were 3451
member were transacting with the co-operative society.

During the same year It introduced new type of deposit “SHIVA

DASHAMANOTHSAVA” (with 12% annual interest) which is
activated from 30.10.2007 and finally Rs.147 lakhs of deposits were
made from its members and the society has invested Rs.21.41 lakhs in
various banks and totally it attained 13crores of annually transaction
and Rs.8,86,570 of profit and distributed dividend at 7.5% to its
members during that year i.e 2006-07 for the great achievement of the
society, “THE INDIAN ORGANISATION FOR BUSINESS
RESEARCH AND DEVELOPMENT” NEW DELHI selected “Shiva
credit co-operative society” and gave an award “Rashtriya Udyoga
Rathna Prashasthi” at 28.08.2007.

In the year 2007-08 there were 98 members joined and 22 members

were retired and it collected Rs.48.47 lakhs of share capital and
3,25,000 from members and the total membership goes 3508 and
during the year total deposit was Rs.194 lakhs and it has increased
during year Rs.47 lakhs compared to previous year and society gave
Rs.188.74 lakhs of various loans to its member and public totally if
attained Rs.14crores of Annual transaction and earned Rs.9,15017/- of
net profit and distributed dividend rate at 9% to its members and it

25
invested 31.20 lakhs in various banks its increased 10lakhs from
previous years.

In the year 2008-09 with the presidentship of shree

N.G.Shikantappa celebrated “Silver Jubilee” and conducted “Annual
General body meeting” at the venue “Shree Tharala Balu Samudaya
Bavana” Gollarahalli, Honnali on 14.09.2009.

On this occasion “A New Branch of Shiva Credit co-operative

society” established on 23.08.09 at SURAHONNE”. And that time it
collected Rs.4,10,000 share capital from members and total share
capital collected at the end of year is Rs.51,75 lakhs. The members
which newly joined are 107 and 58 members were retired and the total
membership came to 355 and the deposits increases by Rs.7 lakhs and
it is 195.94 and totally it transacted annually Rs.14crores and earned
11,32,187/- net profit and distributed profit at 12% to its members and
at this year.

“The Economic Growth Society of India” New Delhi gave an

award “Rashtriya Nirmana Rathna” for the achievement of the “Shiva
credit co-operative society” on 28 december 2008.

If we study the above figure, it is very clear that year by year, the
society has gained more and more profit and had economic progress.
The society is helpful in the community not only in the Honnali but in
the various region society stands as on ideal model for private
upcoming community in the society.

26
 Source of Fund:
The main source of fund of this society is share capital collected
from share holders which is limited to Rs.50crores and with 4500
members Acceptance of deposits from members. Its own funds which are
created out of profits and borrowing from district central co-operative
banks in case of need.

The Society collects surplus money from the members as deposits

for the safety of the public, money collected are preserved by banks and
interest at a certain rate is given on the amount of deposits, the deposits
are beneficiary because they get a certain rate of interest on deposits,
besides the safely of their amount on the other hand, the society can earn
some money on the amount collected in the form of deposits. To suit the
various requirements of the depositors the society has introduced
different schemes. They are as follows:
1. Savings Deposits
2. Current Accounts
3. Fixed deposits
4. Recurring deposits
5. Shiva Yojana Nidhi
6. Pigmi deposits.

The Society has collected different types of deposits form 2004-05 to

2009 are as follows.

Table showing various types of deposits collected by society:

Sl. Types of Deposit 2004-05 amt 2005-06 amt 2006-07 amt 2007-08 amt 2008-09 amt
No in lakhs (Rs) in lakhs (Rs) in lakhs (Rs) in lakhs (Rs) in lakhs (Rs)
1 Savings Deposits 266.83 290.98 396.85 433.64 386.94
2 Current Accounts 12.96 15.84 45.65 42.69 14.24

27
3 Fixed Deposits 18.98 10.48 27.16 37.90 25.18
4 Recurring Deposits 1.11 1.12 1.96 1.80 1.31
5 Shiva Yojana Nidhi 10.85 11.89 6.46 2.74 2.32
6 Pigmi Deposits 55.44 71.82 86.78 97.10 128.74
Total 366.17 402.13 564.86 614.87 558.73

From the above table we can conclude that from 2004-05 to 2005-
06 the total deposit has been increased of 35.96 lakhs and from 2005-06
to 2006-07. The total deposit increased to 162.73 lakhs and the year
2006-07 to 2007-08. The deposits were increased to 50.01 as compared to
previous year the deposit collected got steady growth. In the year 2007-08
to 2008-09 the deposits got decreases. It has been came down to 56.14
lakhs.

Table showing total deposits collected by the society from

2004 to 2009 (in lakhs.)
Year Deposits (Rs)
2005 366.17
2006 402.13
2007 564.86
2008 614.87
2009 558.73

28
Representation of Total Deposits Collected by the Society in
Bia Diagram.

700
614.87
600 564.86 558.73

500

402.13
400 366.17

300

200

100

0
2005 2006 2007 2008 2009

Lending of the Society:

Important types of loans provided to its members are as follows on
members own responsibility it provides Rs.2000/- without interest for the
loan amount exceeding Rs.1000/-, It provides loan upto Rs.5000/- at 10%
rate of interest.

For members, who donot have permanent properly it provides loan

amounting to Rs.30000/- on boil of other financial persons. For members
who have permanent properly, it provides loan upto Rs.80,000/- at 12%
rate of interest for both.

29
 Loan is also given on the surely of the members house property
amounting upto Rs.10,00,000/- the rate of interest charged is 15%.

Society provides loan for constructing Building and housing loans/

expansion/ purchase upto Rs.15,00,000 the rate of interest charged is
13%.

Society provides loan on the surely of land of the members

amounting upto Rs.10,00,000/- the rate of interest charged is 15% and
can repay the loan amount in 100 equal monthly installment.

The society provides the loan on the surely of gold ornaments for a
maximum amount of Rs.1,00,000/- the loan is given on the basis of 65%
of the appraises value of the gold. The rate of interest charged is 11% the
amount should be repaid within 6 months on daily basic.

Vehicle loan is provided by the society on the surely of vehicles,

for 2 wheelers and 3 wheelers the loan amount will be 80% of the on the
road value and 4 wheelers the loan amount will be 75% of the on the road
value with 13% rate of interest for both repayable in 40 and 60
installment respectively.

The society gives loan on the surely of fixed assets upto

Rs.10,00,000 with a rate interest of 13% and it gives loan on surely of
salary of its staff the interest rate is 15% and it provides loan to its
member on the basic of deposits at 12% interest.

30
 Loan is also given on the surely of national saving certificates
(NSC) and KVD.
This loan is goven on 70% of the face value of the NSC at 13%
interest repayable with in the due date of NSC & KVD.
Loan is also given to improve the members business the minimum
amount of loan is Rs.50,000/- and maximum limit is Rs.3,00,000/- with
interest of 15%.

Table showing total lending of the Society

Year Loan amount

(in Rs. in lakhs)
2005 107.60
2006 157.67
2007 188.16
2008 188.74
2009 198.30

Representation of loans and advances given to the members

from 2005 to 2009

31
 250

198.3
200 188.16 188.74

157.67
150

107.6
100

50

0
2005 2006 2007 2008 2009

From the above table, we come to know the total lending of the
society from 2005 to 2009. As the loans and advances given are
increasing year by year upto 19.8 crores this shows the improvement and
lending capacity of the society.

Management of the society:

The management of the society is democratic and honorary. It is
based on the principle that “One member, one vote” the management is
entrusted to two bodies.

A. A General committee consisting of all members, and

B. A managing committee of a members, chosen from among the
members of the general committee at its general meeting the
general body is ultimate authority on all matters concerning the
society. A president and wise president are elected. The secretary
carries on the executive work of the society subject to the control
of the president.

32
 The managing committee is responsible for the routine and executive
business of the society. If admits new members, recovers arrears due
from members, recover arrears due from members and exercises
supervision over them, disposes of the loan application raises for the
society and inspects the accounts maintained by the secretary.

33
Body of Directors in the Year 2008-09 is:
N.G.Shreekantappa President
T.S.Sunandamma Wise-president
M.G.Virappagowdru Director
D.Thirthalingappa Director
H.Haleshappa Director
T.Shankarappa Director
G.P.Ramappa Director
Dr.H.H.S.Rudresh Director
D.Chandrappa Director
B.Siddappa Director
S.N.Gopalnaik Director

Progress of the Society:

Following is the table showing the “Present financial position” of the
society in the year 2009.
Particulars Rs. in lakhs
Share capital 51.75
Reserve fund 39.02
Deposits 194.94
Advances 198.30
Net profit 11.32
Dividend 10

Following is the table showing statement of progress of society from

2005 to 2009
Particulars 2005 2006 2007 2008 2009
Share capital 44.73 45.49 46.22 48.87 51.75
Reserve fund 8.18 12.00 28.30 33.58 39.02
Deposits 133.00 142.00 147.00 194.00 195.94
Advances 107.60 157.67 188.16 188.64 198.30
34
 Members 3558 3455 3451 3508 3557
Net profits 7.71 7.82 8.86 9.15 11.32
Dividends 6 7 7.5 9 10
Investment in 39.13 27.71 21.41 31.20 30.00
banks

From the above table we can say that from the year 2005 to 2009
every item has increased except number of members; it got decreased
from 2005 to 2008 and again it increased to 3557 and investments in
other banks also decreased and also fluctuated in 2008 and 2009, it
increased at the last two years.

35
The structure of management of society can be shown in a chart as
follows:

SHARE HOLDERS

PRESIDENT

VICE PRESIDENT

DIRECTORS

SECRETARY

ACCOUNTANT

CLERKS CUM CASHIERS

SERVENTS

36
37
 CHAPTER – 6

FLOW OF CREDIT IN “SHIVA CREDIT CO-

OPERATIVE SOCIETY”, HONNALI

A. Meaning of Credit

B. Classification of Credit

C. Credit facilities or loan to member

D. Procedure of providing loan by society

E. Types of credit provided by the society

38
Flow of credit in Shiva Credit co-operative Society:
Meaning of Credit:
“Credit means good opinion founded on the belief in person’s
“Veracity, integrity, ability and virtue”. Credit refers to the confidence in
person’s willingness and ability to pay. A person’s credit depends on
three C’s-Character, Capacity and Capital. It is a combination of all these
qualities, which go to make a man’s credit. He must be honest and fair in
his dealings with others; he must also have capacity for making his
business a success; and he must be a man of substance. Credit is thus an
attribute of the borrower.

Definition:
The word “Credit” has been derived from the Latin word “Credo”
meaning “I believe”. Credo, however is a combination of the Sanskrit
word, meaning “Trust” and the Latin word “do” meaning “I Place”
 According to Wingfield streford, credit is “nothing more or less than
faith and faith no less on the stock exchange than before the alter, is
the substance of things hoped for, the evidence of things not seen”.
 According to William Stanley Jevons, credit is “nothing but the
deferring of payment”.
 According to Cole, “credit is purchasing power not derived from
income, but created by financial institutions either as an offset to idle
incomes held by depositors in the banks, or as a net addition to the
total amount of purchasing power”.
It is in this sense that the term credit is used in current monetary
discussions.

39
Classification of Credit:
Credit may be either for production or for consumption. “The line
between business and consumption credit is not easy to draw. Even the
purpose of the loan does not represent as the whether it is business or
consumption credit. It is easier to distinguish a purpose if a complete
financial record of the farmer is available but even then may be difficulty
in affixing an appropriate label to some loans”.

“Productive credit is that which is employed to stop a loss effect on

economy or to create something materially valuable the savings or gains
which result ought eventually be equal the debt. Hence, no need to be
afraid of this from provided the amount and the extent be judiciously
limited to availability of prompt payment. As is popularly said,
productive credit makes its own security and liquidates itself”.

“Consumption credit, on the other hand is the straw that beakes a

camel’s back”. Says T.N.Carves. “It is undoubtedly a bad practice to
borrow money with which to buy articles of consumption…..” And gives
a form mortgage as security because it encourages over borrowings and it
may be more costly to the borrower”.

The Reserve bank of India has adopted the following classification

according to purpose of credit.
1. Agricultural purpose:
a. Short term Credit:
For purchase of seeds, manure and folders; payment of rent, wages,
revenue, cess and other charges, irrigation of crops hire charges of
pumps.
40
 b. Medium term Credit:
For purchase of live stock, bunding and other land improvement.
Repairs of agricultural implements modenery.

c. Long term Credit:

For the purchase of land, construction of new wells development of
new irrigation sources other capital expenditure on agriculture.

2. Non-form business purpose:

a. Short term Credit:
Repair of production equipments and furniture current expenditure
is non-form business.

b. Long term Credit:

Purchase, construction, addition and repair of building for non-
forms business purchase of form equipments transport equipments and
furniture.

3. Family Expenditure:
Purchase of Domestic utilities clothing etc. medical education and
other family expenses.
Purchase or construction of Residential houses.
Expenses relating to marriage and other ceremonies.

4. Other purpose:
a. These include purchase of buildings and ornaments shares and
debentures of companies, co-operatives.

41
 b. Deposits with co-operative societies, private money lenders,
traders.
c. Unspecified purpose and payment of old debt.

Credit facilities or loans to members:

Introduction:
The Shiva Credit co-operative society is not only accepting
deposite from the members. But it is also providing loans to formers,
Business mens, Small traders, Salary earners at the reasonable rate of
interest.

In the Society, the Secretory knows from the experience that all the
depositors does not withdraw all their money at the same time. Moreover,
has when there are withdrawals, the society gets deposits fromt eh
existing as well as new depositors. The loans granted for fixed assets like
buildings, machinery, repayable within 3 to 4 years. The secretary
stipulates periodical repayment of installment towards liquidation of these
advances thus by a proper employment of funds, the secretary is able to
keep the funds liquid or repayable at short notice and is in a position to
meet the demand of his depositor as members.

Procedure for Lending loan:

The following procedures have to be followed before providing
loans.
1. Eligibility: The eligibility to take loan is membership from the
society.
2. Filling the loan application form.
42
3. Contents of the application form:
A loan application form contains 4 following types.
a. Bio-data:
The bio-data of the applicant and bailee should be collected.
it must be filled with name of the applicant and bailee, business
profession, address age. If he has became a member of the other
society or not if any loan is taken from other sources period of loan
etc.

b. Particular of the applicant:

The particulars of the applicant consist of two phase one should
be filled by the applicant and other phase should be filled by the
office staff. This column contains the particulars like name of
shareholders in the applicant’s family type of loans etc.

c. Office note:
It contains date of membership of the applicant and bailee, share
amount paid, if any penalty paid is post if bailee has paid any
penalty on the loan amount is the past is past if any loan taken and
not repaid is time etc.

d. Particulars of bailee:
The particulars of the bailee column consist of the two phases,
one should be filled by the applicant, regarding particulars of bailee
and other phase should be filled by the staff this column contains
the particulars like name of shareholders in the bailee family type
of loan taken by the bailee etc.

43
 4. Registration of application form
5. Annexure with the application:
a. Fixed assets numbers.
b. Muncipal tax receipt number.
c. Receipt of the Salary, if the applicant is an employee.

Types of Credit provided to its members:

Different types of loan as credit in shiva credit co-operative society
by which it provides lending facilities to its members are as follows.
1. Self loan
2. Vehicle loan
3. Business loan
4. Loan on Salary
5. Loan on Fixed deposit
6. Ornament loan
7. Building construction / Expansion / purchase loan
8. Loan on Recuring deposit.
9. Shiva Yojana Nidhi loan
10.Loan on pigmy deposits.

Self Loan:
Self loan is a loan provided by the society to its members on
members own responsibility. Rs.2000 without interest. For the loan
exceeding Rs.2000 its provides loan upto Rs.5000/- at 15% rate of
interest.

44
Following is the table showing total Self-loan provided to members
from 2004-05 to 2008-09
Year Total Self loan (Rs. in lakhs)
2004-05 48.02
2005-06 43.93
2006-07 34.96
2007-08 22.84
2008-09 19.45

By analyzing the table the self loan is decreased year by year.

The following in the diagram showing total self loan provided by the
society.
60

50 48.02
43.93

40
34.96

30
22.84
19.45
20

10

0
2004-05 2005-06 2006-07 2007-08 2008-09

45
Vehicle loan:
Vehicle loan is provided by the society on the surely of Vehicles
for two wheelers and three wheelers the loan amount will be 80% of the
on the road value and 4 wheelers the loan amount will be 75% of the on
the road value and 13% rate of interest for both repayable in 40 and 60
installments respedively.

Table showing total vehicle loan provided to members from 2004-05

to 2008-09
Year Total Vehicle loan (Rs. in lakhs)
2004-05 7.2
2005-06 6.6
2006-07 5.9
2007-08 19.0
2008-09 25.4

Following is the Diagram showing total vehicle loan provided by the

society:

30

25.4
25

20 19

15

10
7.2 6.6
5.9
5

0
2004-05 2005-06 2006-07 2007-08 2008-09

46
Business improvement loan:
Society provides loan to improve the business of members. The
minimum amount of loan is Rs.50000/- and maximum limit is
Rs.3,00,000/- with interest charged 15%.

Following is the table showing total business loan provided from

2004-05 to 2008-09.
Year Total loan (Rs. in lakhs)
2004-05 12.55
2005-06 24.38
2006-07 36.18
2007-08 45.89
2008-09 44.12

The loan provided to business is increased year by year the members are
benifited by this loan.

Diagram showing total business loan provided by the society:

50
45.89
45 44.12

40
36.18
35

30

25 24.38

20

15 12.55
10

0
2004-05 2005-06 2006-07 2007-08 2008-09

Loan on Salary:

47
 Society provides loan to employees who are the members of it and
it is based on the salary of the persons and the interest rate charged on
this loan is 15%.

Table showing total loan provided on salary of members from 2004-

05 to 2008-09
Year Total loan (Rs. in lakhs)
2004-05 1.2
2005-06 1.5
2006-07 1.3
2007-08 1.2
2008-09 0.75

Following is the diagram representing the loan provided on salary

from 2004-05 to 2008-09
1.6
1.5

1.4
1.3
1.2 1.2
1.2

0.8 0.75

0.6

0.4

0.2

0
2004-05 2005-06 2006-07 2007-08 2008-09

48
Loan on Fixed Deposit:
The members are provided loan on their fixed deposits is which
they have the amount is it which is not available for withdrawals. So
society provided this loan at the rate of interest 12% on their deposits.

Following is the table showing total loan provided on fixed desposts

Year Total loan (Rs. in lakhs)
2004-05 2.6
2005-06 5.5
2006-07 3.8
2007-08 15.8
2008-09 13.3

Diagram of total loan on fixed deposits:

18
15.8
16

14 13.3

12

10

6 5.5

3.8
4
2.6
2

0
2004-05 2005-06 2006-07 2007-08 2008-09

49
Loan provided on Gold ornaments:
The society provides gold ornaments loans means on the surety of
gold ornaments for maximum amount of 5lakhs. The loan is given on the
basic of 60% of the appraiser value of gold. The rate of interest charged is
11%.

Table showing total gold ornament loan provided to members from

2004-05 to 2008-09
Year Total loan (Rs. in lakhs)
2004-05 19.9
2005-06 45.8
2006-07 72.0
2007-08 57.5
2008-09 71.8

The following diagram showing total gold ornament provided.

80
72 71.8
70

60 57.5

50 45.8

40

30

19.9
20

10

0
2004-05 2005-06 2006-07 2007-08 2008-09

50
Building construction / housing loan:
Society provides loans for building / expansion / purchase /
construction upto Rs.15 lakhs with the rate of interest at 13%.

Table showing the total building / housing C/E/P loan provided to

members from 2004-05 to 2008-09.
Year Total loan (Rs. in lakhs)
2004-05 3.75
2005-06 3.20
2006-07 5.40
2007-08 2.51
2008-09 2.25

From the above data the housing loan provided is fluctuated from year to
year and decreased to 2.25lakhs in 2008-09.

Diagram Representing total loan provided for housing and building

C/E/P from 2004-05 to 2008-09.
6
5.4

4 3.75

3.2
3
2.51
2.25
2

0
2004-05 2005-06 2006-07 2007-08 2008-09

51
Loans providing on Recurring deposits:
This type loan is provided on the deposits of members the amount
deposited is the base for this loan through this members can receive loans
with a rate of interest 2% on the amount deposited.

Following is the table showing total loan lent on recurring deposits

from 2004-05 to 2008-09.

Year Total loan (Rs. in lakhs)

2004-05 0.15
2005-06 0.23
2006-07 1.19
2007-08 0.05
2008-09 0.80

Diagram showing the total loan lent on Recurring deposit:

1.4

1.19
1.2

0.8
0.8

0.6

0.4
0.23
0.2 0.15
0.05
0
2004-05 2005-06 2006-07 2007-08 2008-09

52
Loan on Pigmy deposits:
The members who wants to deposit money daily in a smaller
amount. They provided pigmy deposits members can deposit money at
the door of their house. They can also get loan from this deposits the rate
of interest charged is 13% on the deposits.

Following table shows the total loan on pigmy deposit from 2004-05
to 2008-09.
Year Total loan (Rs. in lakhs)
2004-05 6.7
2005-06 18.0
2006-07 16.4
2007-08 16.6
2008-09 16.18

From the above table we can conclude the loan taken on pigmy deposits
are increased in 2005-06 and no majors till 2008-09.

Diagram shows the total loan on P.D:

20
18
18
16.4 16.6 16.18
16

14

12

10

8
6.7
6

0
2004-05 2005-06 2006-07 2007-08 2008-09

53
Chart Showing Maximum limit of rate of interest provided on the
deposits:
Duration of deposits Rate of interest
From 45 days to 90 days 6%
From 90 days to 180 days 7%
From 181 days to 1 year 8%
From 1 year to 2 years 9%
From 2 year to 3 years 10%
Above 3 years 11%
For Senior citizen increase 10.5%

54
 CHAPTER – 7

ANALYSIS OF RESPONSE

 Introduction

 Analysis of Response

 Major summary of Findings

55
 ANALYSIS OF RESPONSE

Introduction

Survey means going into the depth of the responses and collecting

inner expression for the purpose of knowing attitude of the respondents

about which the survey is conducted.

The purpose of conducting the survey is the in-depth study of the

attitude of the members and problems faced by the them while dealing

with the SHIVA CREDIT CO-OPERATIVE SOCIETY ltd., HONNALI.

For the purpose of survey questionnaire was prepared and was

given to 50 members. The entire area covered by the survey is classified

into different parts and the members are given the format of questionnaire

and are requested to fill it and return to us.

The survey has been successfully carried out and the respondents

are having close contact with the society. They gave good and realistic

answers to the questions.

56
Their answers and replies are analyzed as follows:

For the purpose of survey the respondents are classified on the

basis of their age under 4 categories.

Table showing classification of members on the basis of their Age Group,

Sl.N Age group No. of Respondents %

o
1 18-25 years 08 16
2 25-40 years 25 50
3 40-50 years 10 20
4 Above 50 years 07 14
50 100
Source : Survey result

Interpretation

The above table shows that 50% of respondents are the age group

of 25-40 years, followed by 20% respondents from the age group of 40-

50 years, while 16% of respondents from the age group of 18-25 years

and 14% of respondents are from the age group of Above 50 years.

Graph showing classification of members on the basis of their Age

Group

57
 80

70

60

50 50

40

30

20 20
16
14
10

0
18-25 years 25-40 years 40-50 years Above 50 years

Table 2

Table showing classification of members on the basis of

Gender.

Sl.N Gender No. of Respondents %

58
o
1 Male 30 60
2 Female 20 40
50 100
Source: Survey result

59
Interpretation:

In the above table, the response obtained from the male members is

more in numbers i.e. 60% and remaining 40% of respondents are female

members who are in less.

Sales

20

30

60
Table: 3
Table showing classification of members on the basis of their
occupation,
Sl.No Occupation No.of %
Respondents
1 Business 08 16
man
2 Agriculture 15 30
3 Employees 14 28
4 Others 13 26
Total 50 100
Source: Survey result
Interpretation:
In the above table, we can find that majority of individuals belong
to professionals. i. E. 30% followed by the govt. employees who are in
28% and 26% individuals belong to others group includes Housewife and
students. While 16% of respondents belong to business who are in less in
numbers.

61
Graph showing classification of members on the basis of their occupation

30

25

20

15

10

0
Business man
Agriculture
Employees
Other

Table: 4

62
 Table showing distribution of respondents according to their
monthly income.
Sl.No Income (in No.of %
Rs.) Respondents
1 Below 5000 20 40
2 5000-10000 14 28
3 10000- 12 24
20000
4 Above 4 08
20000
Total 50 100
Source: Survey result

Interpretation:
From the above table we come to know that 40% of the
respondents belong to below 5000 group, while 28% of respondents
belong to middle income group, followed by 24% of respondents belong
to in come group of 10000-20000 and 8% of respondents belong to
income group of above 20000.

Graph showing distribution of respondents according to their

monthly income

63
 40

35

30

25

20

15

10

0
Below 5000 5000-10000 10000-20000 Above 20000

Table 5
Table showing distribution of respondents on the basis of
period of Contact with the society.
Sl.No Period No.of %
Respondents
1 Below 2 07 14
years
2 2-5 years 19 38
3 5-10 years 21 42
4 Above 10 03 06
years
Total 50 100
Source: Survey result

Interpretation
From the above table, we can see that repondents who have contact
with the society 5-10 are more in numbers. The members who are in
contact with the society for 5-10 years are given god suggestions. And in
64
the above table the numbers of respondents who are dealing with society
for below 2 years, 2-5 years and above 10 years are in 14%, 38% and
06% respectively.

above 10 years; 6
Below 2 years; 14

5-10 years; 42

2-5 years; 38

Talbe6
Table showing distribution of repsondents on the basis of
Opinion about society services.

Sl.No opinion No.of %

Respondents
1 Excellent 03 06
2 Good 17 34
3 Satisfactory 30 60
4 Bad 00 00
Total 50 100
Source: Survey result

Interpretation:

In the above table, 60% of respondents sates that society services is

Satisfactory while 34% of toal repsondents state that good and 06% of
respondents states that Excellent.
65
 Graph showing distribution of respondents on the basis of Opinion
about society service.

60 60

50

40
34
30

20

10 6

0
Excellent 0
good
satisfactory
bad

Table 7
Table showing distrubution of respondents according to Borrowing
of Loans.

Sl.No Occupation No.of %

Respondents
1 Yes 45 90
66
 2 No 05 10
Total 50 100
Source: Survey result

Interpretation:
From the above table it shows that 90% of respondents borrow loan
from the society and remaining 10% of respondents replied that they have
not borrowed any loan from the society.

Graph showing distribution of respondents according to Borrowing

of Loans.

NO; 10

Yes; 90

Table 8
Table showing classification of respondets on the basis of the Type of
loan required by the member. (ONLY APPLICABLE TO 45
MEMBERS)
Sl.No Type of loan No.of %
required Respondents
1 Long – term 08 18
67
 2 Middle- term 28 62
3 Short-term 09 20
Total 50 100
Source: Survey result

Interpretation
From the above table, we can easily understood that the long-term
lona required by the members are in 18% of total respondents, while 62%
of total respondents, while 20% of the respondents requires medium and
shoret term loan respectively.

68
 Graphy showing classification of respondents on the basis of the
Type of loan required by the member. (ONLY APPLICABLE TO 45
MEMBERS)

Short-term Long-term
20% 18%

Middle-term
62%

Table 9
Table showing the classification of members on the basis of
satisfaction regarding loan facilities provided by the society.

Sl.No Satisfaction No.of %

Respondents
1 Yes 35 78
2 No 10 22
Total 45 100
Source; Survey result

Interpretation:
In the above table, 35 respondents were satisfied out of 45
respondents (78%) with the lona facilities provided by the society and
remaining 22% of total respondents are dissatisfied with loan facilities
given by the society.
69
 Graph showing the classification of member on the basis of
satisfaction regarding loan facilities provided by the society.

No
22%

yes
78%

Table 10
Table showing the types of loan borrowed by the members.

Sl.No Types of loans No.of %

Respondents
1 Self loan 20 44
2 Business loan 03 06
3 Gold loan 07 15
4 Pigmy loan 03 06
5 Fixed deposit loan 09 20
6 Recurring deposit 01 3
loan
7 N.S.C. Loan 0 0
8 Shiva yojana nidhi 01 3
9 Vehicle loan 01 3
Total 45 100
Source; Survey result

70
Interpretation:
From the above table, it clear the 44% of members are borrowed
Self loan and 15% of members are borrowed gold loan, and 06% of
members are borrowed Business and pigmy loan, and 20% of respondents
borrowed fixed deposit loan, and 3% of total respondents borrowed
recurring deposit, N.S.C., Shiva Yojana Nidhi. and vehicle loan.

71
 Vehical loan; 3 Self loan; 4
Shiva Yojana Nidhi; 3 Business; 6
Recirromg deposit loan; 3

Gold loan; 15
fixed deposit loan; 20

Pigmy loan; 6

Table 11
Table showing the opinion of the members regarding interest
charged on loans.

Sl.No Opinion No.of %

Respondents
1 High 05 11
2 Reasonable 40 89
3 Low 0 0
Total 45 100
Source: Survey result

Interpretation:

72
 From the above table shows that 89% of respondents are satisfied
with the interest charged on loans, while 11% of membes’s states that
interest charged on loan by society is high. No respondents feels that
society charges low rate of interest.

High
11%

reasonalbe
89%

Table 12
Table showing the opinion of respondents regarding installments for
the repayment of loan.

Sl.No Opinion No. of %

Respondents
1 More 07 15
2 Reasonable 35 78
3 Low 03 07
Total 45 100
Source: Survey result

Interpretation:

73
 From the above table, we can see that the 78% respondents is
stratified with the installment given by the society for repayment of loan.
While 26% of the total respodents are moderately satisfied and 15% of
the total respondents are dissatisfied with the number of installments
gives by the society for repayment of loan. They need few more
installement to repay the borrowed loan.

Graph showing the opinion of respondents regarding installments for

the repayment of loan
more
low 15%
7%

reasonalbe
78%

Major survey findings:

Survey has been probed into the activities of co-operative society
in general and Sri. Shiva Credit Co-operative Society Ltd., in particular.
For the survey conducted the following are the summary of observations.
 For the purpose of survey members are classified into 4 categories
i.e. 18-25 years, 25-40 years, 40-50 years and above 50 years. The
age group of 25-40 years is more in numbers and given good
suggestions, since they have long contact with the society. The
society considers the suggestions given by senior members.

74
 The society concentrates the female members because they are less
in number. And, it should take necessary measures to increase
female members also.
 The majority of members belong to middle-income group. Hence
society should concentrate on the mobilization of savings of
middle-income class of members.
 Majority of the respondets are satisfied with the services provide
by the society, but till society should improve its services.
 The respondents who are borrowed loan from the society are more
in numbres and there is also some of members who are not
borrowed any loan from society. Therefore, society should
concentrate on those members who are not borrowed any loan from
the society.
 Most of the member’s are required long-term land medium term
loans. So, the society increase its long-term, loans by reducing
short-term, loans.
 The loans facilities given by the society is satisfied to the majority
of the members but, till society should take measures to satisfy
other members.
 The maximum members utilize only Self loan, business loan, gold
loan, and vehicle loan. Some the society should re-arrange all those
loan facilities, which are not utilized by the members.
 Interest charged on loan is moderately satisfied to members and
society further decrease its interest rate and attract more members.
 The number of installment given by the society for repayment of
loan is satisfied for maximum members. So society should try to
adopt new methods to collected debts from the members.

75
 Suggestions and Conclusion

Introduction
For the improvement of any organization, it should take proper
action or measures for continuous improvement on the basis of
opinions given by the respondetns and observations made during the
survey the followings suggestions have been given for improvement
of performance. While dealing with the society some of the membes
are found satisfied and some of them are found dissatisfied. However,
measures should be taken to all categories of members.

Problems and Suggestions

While doing the survey some of the members gave the opinion by
expressing their problems and some of them gave suggestions for their
problem. They are:

1. Educational Loan:
Most of the members were not properly educated. So, the
society should concentrate on the education of the members and
should provide loan facilities to the higher education.

2. Increase loan amount:

Majority of the membes are complaining about loan amount.
The loan amount granted by the society is low:
The society should re-arrange its loan facility given and
those loan schemes, which are not utilized by the members, should
reduce the loan amount on those schemes and should increase loan
amount on which the members required.
76
3. Tedious procedures:
The procedures made by the society for granting loans are
very long and it is difficult to borrow loan for the members who are
in urgent.
The society should shorten it sprovisions and procedures as
possible as low and society should give loan facilities for members
who are in urgent.

4. Share capital:
To meet the above requirements and to give best services to
its members the society should increase its share capital by raising
funds.

5. Entrepreneur Development:
The society must increase the amount of business loan given
to its shareholders for the purpose of increase the enterpreniual
capacity of its members.

6. Increase the number of wokers:

As per the 2005-06, nine posts are granted but society
recruited only 7 workers. In order to run the society smoothly the
Board must fill the granted posts.

7. Legal Actions against Over dues:

The society must take legal and proper actions against
overdue, which helps to recover the loans, granted to members of
the society.

77
8. Increase the penal Rate of Interest:
The society currently charging 2% more than the actual interest for
the surety loan and 3% more than the actual interest for the pledged
loan. So, in order to recover the debts in quicker way the society
must increase the penal rate of interest.

9. Adoption D.C.B. (Demand Collection Balance) register:

Hence society is already computerized it must adopt the
D.C.B register for identifying the actual over dues during the year.

10.Proper checking:
In case of providing vehicles loan the society must keep the
one key of the vehicles and one photo copy of the R.C. Book,
society must write the term “WITH LOAN” and must put the seal
of the society on the society on the original R.C. Book. This helps
to identifly and recovers the loan granted by the society.

78
Conclusion
 No, a doubt, Shiva credit co-operative society ltd., is working in
the right direction. It cannot be ignored, since its establishment it is
striving hard for improving the economic conditions of the
members.
 At the same time it is servicing its members in various ways i.e.,
advancing loans as and when needed at cheper rate of interest,
collects deposits from their savings, work for welfare of members
etc.
 Loan distribution and collection system is also good and majority
of the members were satisfied. Loan is allotted without
discrimination members are satisfied with the working of the
society.
 It is necessarily that society should always orient its activities
towards welfare of members. It is well-known fact that the main
objective of the society is “EACH FOR ALL AND ALL FOR
EACH”. Therefore, it is necessary that society should always aim
at continuous development or adoption, which will be more helpful
to the members of its services.
 The opinion of each member should be of great importance in
taking steps towards development. Therefore, research studies like
the present on may help the society to re-orient its strategy related
to advancing loans, deposits mobilizations and provision of
different services.

79