Section 27(4) in The M.P. State Aid to Industries Rules, 1959
(4)Loans to Co-operative Societies of workers for purposes other than share capital may be granted without any security if the sanctioning authority is convinced of the soundness of the society and the integrity of the office-bearer, such loan being subject to such conditions as the sanctioning authority may deem proper, in the interest of the safety of the loan :Provided that loans to be granted to any Co-operative Society of workers may extend up to the limit of credit laid down by the Society in its bye-laws after allowing for such credit as might have already been obtained or covered by the Society against the limit of its credit.
