Section 65 in Rajasthan Co-operative Societies Act, 1965
65. Restriction on loans.
(1)A co-operative society shall not make a loan to any person other than a member:Provided that with the general or special sanction of the Registrar, Co-operative Society may make loans to another co-operative society.[(1-A) At least one-third of the total amount of loan to be sanctioned by a primary village service society or a farmers service society in a year, and not less than twenty-five per cent of the total amount of loan to be sanctioned by a Primary Land Development Bank in a year, shall be sanctioned to those members who belong to weaker sections:Provided that where in the opinion of the State Government such reservation is not workable, the State Government may fix different percentages of reservation of such loan for weaker sections in different areas.] [Inserted by Rajasthan Act No. 17 of 1976.](2)Notwithstanding anything contained in sub-section (1), a cooperative society may make a loan to a depositor on the security of his deposit.(3)The Government may, by general or special order, prohibit or restrict the lending of money on the security of movable property or on mortgage of immovable property by any society or class of societies.(4)The lending policy of a financing bank shall be approved by the Government.[65A. Interest not to exceed principal. - Notwithstanding anything contained in any agreement or in any law for the time being in force, a society other than a Land Development Bank shall not charge by way of interest an amount exceeding that of the principal from a member taking short-term loan for a period not exceeding fifteen months or from a member initially taking such short-term loan but subsequently getting it converted into a medium-term loan on account of any natural calamity, irrespective of whether the loan was or is given before or after the commencement of the Rajasthan Co-operative Societies (Amendment) Act, 1984, subject, however, that the amount of such short-term loan including such portion thereof as has been converted into a medium-term loan does not exceed Rs. 2,000/-] [Inserted by Rajasthan Act No. 14 of 1984. [21-7-84.]]
