In a significant development for the cooperative sector in Delhi, the United Thrift and Credit Co-operative Societies Federation of Delhi Limited, affiliated with Sahakar Bharati, has achieved a major milestone. The Registrar of Cooperative Societies, Delhi, has finally addressed the long-pending demand of the Federation to increase the loan limits for credit societies, a move that is set to benefit thousands of members across the city.
With this new order, the loan limit for general members has been raised from Rs 2 lakh to Rs 4 lakh, while the limit for salaried members has been increased from Rs 3 lakh to Rs 5 lakh. This long-awaited change will directly benefit hundreds of credit societies operating in Delhi and their members, who rely on these loans for a variety of urgent needs. Many members take out loans for essential expenses like marriage functions, medical treatments, and household necessities.
Over the last ten years, while inflation has steadily risen, loan limits for these societies have remained unchanged, creating a financial strain for members. The average inflation rate in India during this period was 5.5 percent per year, significantly increasing the cost of living and, by extension, the demand for higher loans. The new loan limits aim to correct this imbalance, providing much-needed financial relief to the cooperative sector.
Sunil Gupta, senior official of Sahakar Bharati and President of the Federation, expressed his gratitude to the Registrar of Cooperative Societies and the Cooperative Department for approving this important demand. He noted that this step will greatly strengthen the cooperative movement in Delhi and reaffirmed the Federation’s commitment to its cause.
Gupta emphasized that Sahakar Bharati and the Federation will continue to work tirelessly to ensure the cooperative movement grows stronger in the future. He also highlighted the pivotal role played by the Central Government, led by Prime Minister Narendra Modi, in establishing the Cooperative Ministry three years ago under the leadership of Amit Shah.
According to Gupta, the Federation will continue to support the government’s vision of a robust and capable cooperative sector.
Meanwhile, a circular issued by the Registrar detailed the new provisions. For general members of Thrift and Credit Societies, loans will now be capped at 20 times the value of the member’s paid-up shares, with a maximum limit of Rs 4 lakh.
This is contingent upon the execution of a bond and surety provided by four other members of the society. For salaried members, the loan limit will be up to 25 times the value of their paid-up shares, with a cap of Rs 5 lakh. The higher limit for salaried members reflects the fact that loans to these individuals are more secure, as any default can be recovered directly from their salary by the Drawing and Disbursing Officer (DDO) of the concerned department.
In response to this new order, the bye-laws of Thrift and Credit Societies will be amended accordingly. This decision marks a significant victory for the cooperative societies of Delhi, offering their members greater access to financial resources.