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706 SEBATHIAPURAM PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT ASSOCIATION

THE ORIGINS AND THE HISTORY OF THE ASSOCIATION:-

The 0.706 sebathiapuram co-operative credit union was registered on 18.06.1969 and society
began work on the same day.The golden festival was celebrated on 02.08.1969.Over 500 year's have
been done to perform the specialties.

THE UNION'S AFFAIRS AREA:-

The union's affair is in the village of sivathiapuram and iruvapuram.About 5000 people live in this
area.They are provided with agricultural credit loans, agricultural jewelry loans, women's self help group
loans, jewelry loans and small business loans.

THE SUM OF THE ASSOCIATION:-

At least Rs 1 per participant is required to join a union member and entry fee of
Rs.100.Maximum entry fee is Rs.100.The authorized capital of the union is Rs.40.21 lakhs.

FINANCIAL RESOURCES:-

Participation by joining as a union member and deposits received from Members and non-
members is the Association's financial resources.This allows the members to provide all kinds of loans to
the members.In case of financial deflation, members can get the loan from the District Central
Cooperative Credit Association to meet the requirement.

THE FUNCTION OF THE ASSOCIATION:-

1)Deposits:-

Like all other business associations, all kinds of deposits are obtained.Deposits savings
account, continuous deposits and short, central and long term deposits are also received.Deposits are
given a higher percentage interest than other business associations.
2)Loans:-

The members of the Association are liable to the borrower for the borrower, the agricultural loan,
the medical and the family on the bail.Small and medium sized lending and small business loan loans are
provided for the construction of new building, maintenance, business credit, consumer loan, agricultural
dependence loans, women small business loans.

3)other works:-

The Association operates two fair price shops.Essential commodity control prices and
uncontrolled goods are sold to the people.They fulfill people's needs.The quality of fertilizers is sold at
low cost to farmers.The fertilizer is provided to the loan.

PROGRESS OF THE ASSOCIATION:-

The progress made by the union in the past five years is as follows.

Details

1) Member's loan amount

2)Debt lag

3) practical capital

4)Net profit/ loss

The association is still in profit.

FUTURE DEVELOPMENT OF THE ASSOCIATION:-

Further steps are being taken to open up branches in the community.Action is also being taken to
provide a large amount of jewelery loans and women's self help groups.The activities of the Association
are completely computerized and work is going on.There is a need for public health care in the club to
conduct the camps and promote the association.

The interest rate offered by the Association for fixed deposits.

->30 day's to 45 day's- 5.00%

->46 day's to 90 day's-5.50%

->91 day's to 180 day's-6.00%

->181 day's to 364 day's-7.00%

->365 day's and more-7.25%

In addition to senior citizens who will be appointed for 180 days and more, an additional 0.25%
interest will be paid.

Storage deposits:4.0%

PROCESSES OF SEBATHIAPURAM PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT UNION:-

1) Resource Loans:-

Loans on deposits for members The jewelry loan on the jewelry is a source of credit.

2) Unsecured loans:-

The borrowings provided by the person bail, women's small business loans are unsupported
loans.

3)Causes of Debt:-
 Loans offered on the mortgage The loan is to be given to buy a two-wheeler for small
business capital loans, purchase of mechanical goods, factories, personnel, medical expenses, education
expenses, home utility bail, etc.Jewelry lending to the jewelry is provided for small business and
consumption of goods.

4) Credit amount:-

The amount of credit offered by the Association is as follows

LOANS PROVIDED

1) Jewelry loan

2) Agricultural jewelry loan

3) Agricultural crop loan

4) Women's self help group loan

Credit amount

Rs.10.00 lakhs

Rs.3.00 lakhs

Rs.3.00 lakhs

Rs.10.00 lakhs

Interest rate

7.25%

Nope

Nope

7.25%

Term of the installment

12 month's

12 month's

12 month's

12 month's

Credit Allowance Methods:-

The formal application from the members and the necessary documents, documents received,
the creditworthiness of the loan, the ability to buy and repay their ability to repurchase and then make a
decision in the direction of the Directors meeting.

6) Credit delivery methods:-

Agricultural loans will be disbursed and deposited in the savings account.

7)Debt collection methods:-

The loan is made on a monthly installment basis.Each month, the original amount of installment
plus the interest on the date of collection is collected.

8)Deferred loan recovery method's:-

A formal notification is issued for failing installments and the registration is sent to collect the
loan amount.Those who fail to pay the loan payments are settled by the court and legal proceedings are
undertaken. In addition to the failing installments, the penalty is 1% more.

The association operates two fair price shops and meets the daily necessities of the people.The
Association also provides agricultural loans without interest to the farmers, improving their economic
status and saving them from the scarcity.The women's self help group loans for women also have a lower
interest rate on loans. Thus the association continues to benefit from profits.
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