Section 40(3) in The Arunachal Pradesh Co-operative Societies Rules, 1984
(3)It shall be lawful for a society for a society to grant loans without taking security of movable or immovable property if the purpose for which the loan given is considered production-worthy or credit-worthy and it is reasonably expected that the loans will be repaid by the loanee. The Registrar may, with the approval of the Apex Bank, issue directions to societies to ensure that credit-worthy purposes indicated above received finance from the societies without any difficulties on the one hand, and without being detrimental to the financial of the societies, on the other.
