Section 75 in Tamil Nadu Co-operative Societies Rules, 1988
75. Restrictions on grant of loans.
(1)No society other than a land development bank or a society the object of which is to grant long-term loans exclusively on the mortgage of immovable properties shall grant loans for a period exceeding three years:Provided that the Registrar may, by a general or special order in writing, permit a credit society including a financial bank to grant loans for a period exceeding three years, but not exceeding five years for any of the following objects, namely:-(a)purchase of cattle and carts;(b)constructions, buying or repairing of dwelling houses or cattle sheds or other buildings;(c)expenses on account of-(i)purchase of land;(ii)improvement to or the levelling, reclamation, draining or occasional heavy manuring of land;(iii)constructions of, or major repairs to, irrigation sources such as private tanks, wells and channels;(iv)purchase of pumpsets and construction of pumpsheds;(v)adopting improved methods of cultivation;(d)liquidation of debts;(e)petty trade;(f)development of cottage and small scale industries including farm based industries;(g)payment of obligatory expenses on a scale appropriate to the loanees which by customary usage they have to-incur in connection with their marriages or other ceremonies or in connection with marriages, funerals or other ceremonies of dependants;(h)development of animal husbandry, pisiculture (including fish catching) apiculture or sericulture;(i)purchase of implements or raw materials;(j)purchase of domestic and other requirements; or -(k)such other purposes as may be specified by the Government under sub-section (13) of section 2 of the Act:Provided further that a credit society including a financing bank may grant loans for periods exceeding five years if such loans are granted by availing refinance facilities from the National Bank for Agriculture and Rural Development (NAB ARD) or Industrial Development Bank of India Finance Corporation or such other agencies as may be approved by the Registrar:[Provided also that a co-operative bank may grant loans for various activities under normal banking operations and the repayment period of the loan may be fixed based on the income generation and life of the borrowing unit subject to the policies or guidelines issued by Reserve Bank of India or National Bank for Agriculture and Rural Development, from time to time, and subject to the conditions that the total loans granted under this proviso and outstanding at any time shall not exceed twenty-five per cent of the total deposits.Explanation. - For the purpose of this proviso, "co-operative bank" means a registered society to which the Banking Regulations Act, 1949 (Central Act X of 1949) shall apply.] [Proviso and Explanation was added by G.O. Ms. No. 258, Co-operation, Food and Consumers Protection, dated the 10th September 2003.](2)The Registrar shall also have power to fix, by general or special order in writing, the proportion of the lending limit of a financing bank or credit society (other than a agriculture and rural development bank or society the object of which is to grant long-term loans exclusively on the mortgage of immovable properties) which may be made available for the grant of-(a)loans repayable within one year;(b)loans repayable after one year, but within three years; and(c)loans repayable after three years, but within five years from the date of grant of loans:Provided that the amount of loans that may be made under clause (c) shall not exceed half of the total amount of loans that may be for both sub-clauses (a) and (b).
