Responsibility of Surety
The liabilities of a guarantor are similar to that of borrower, implying that you are equally responsible for paying off the loan. Your credit worthiness would be directly hit if the borrower defaults or even if he repeatedly delays in repaying the monthly installments. There are many judicial pronouncements that have established that surety/guarantor of a loan is liable to pay it if the debtor fails to clear it. It is the responsibility of the surety/guarantor to regularly see whether the principal debtor has paid the loan or not.
HOUSING LOAN
This is a very ambitious, community welfare scheme introduced by the Society to provide housing for all people living in the rural and urban areas in the alignment of PM Awas Yojana. For this purpose Society is providing loan as per the need of the member.
Criteria for providing loan are as under:
- Housing loan will be of Rs 25 lakh, or 90% of total amount of flat/house, whichever is less.
- Society will provide housing loan only in CLP (construction link plan) basis.
- Housing loan will be allowed only in those projects which are approved by this society or developed by the development authorities of various districts.
- Disbursement of housing loan on priority basis on the demand of builder/developer.
- Share money and loan linked share money, 10% of approved loan amount, must be deposited with society before disbursement of loan.
- Bad debts fund must be deposited before the disbursement of regular and housing loan.
REGULAR LOAN
1. Submission of Regular Loan Application
A member, who wishes to take Regular Loan from the Society, has to apply in the Society’s prescribed set of ‘Regular Loan Application Form’ (RLAF). This Form includes Bond Form, Undertaking from Sureties, Letter of Hypothecation, Pre-Receipt and an Authority in favour of the Drawing and Disbursing Officer for Recovery of Loan from Pay Bill.
The RLAF can be obtained from the Society’s Office by paying Rs 10/- towards its cost. It can also be down-loaded from the Society’s website (www.geuctcs.com). In a latter case, the member has to deposit its cost, in cash, with the Society’s Office, at the time of submitting the completed Form
2. Procedure for filling up the RLAF
Members desirous to apply Regular Loan are requested to adopt following procedure:
- Go through the RLAF very carefully and cautiously.
- Complete all relevant columns clearly.
- Put signatures (not initials) on all appropriate places as well as at the right side bottom on each page of the RLAF.
- Produce compulsory three sureties from eligible members. Get the relevant columns filled by them from their own hand-writing. No abbreviations should be used for their concerned Drawing & Disbursing Officer/Pay & Accounts Office.
- Over-writing, if any, must be attested by the applicant.
- A Certificate, given below the Salary Certificate (on the last page of the RLAF), must be signed by the concerned D&DO, P&AO, AOs, as the case may be.
- The details of item (s) which are to be purchased, out of the Regular Loan, must be mentioned, indicating their approximate cost.
- One passport size photo
3. Details of documents to be attached with the RLAF
One self attested copy of each of the following document requires to be attached with RLAF:
- Income Tax PAN.
- Office Identity Card.
- Address Proof i.e. Voters’ ID, latest Electricity/ Landline Phone/Mobile Phone /PNG/Credit Card bill.
- Latest Pay Slip. (in case of Computer generated pay slip, the same may be attested by a Gazetted Officer.
- One latest passport size photograph to be pasted at right hand corner of front page.
- Cancelled Bank Cheque.
- Six post dated Cheques are mandatory.
- Copy of Aadhaar Card.
Apart from above members should also adhere the following:
- Update your Compulsory Deposit.
- Deposit Share Money @ 10% of the Amount of Loan applied for (for example – if loan is applied for Rs 1 lac, the SM should be Rs 10,000/-)
- Bad-debt @ 1% of the total loan applied for. This may be noted that the Bad-debt is a kind of Insurance which covers the loan amount, till its pendency. It is being charged on the basis of the approval of Registrar of Cooperative Societies, Government of NCT of Delhi.
4. Criteria for grant of Regular Loan
The Regular Loan and Short Term Loan sanctioned to an eligible member for purchase of durable items. Loan limit of both the loans and its criteria are given as under :-
| BASIC PAY | REGULAR LOAN | SHORT-TERM LOAN |
|---|---|---|
| (a) Up to Basic Pay Rs 30000/- | Rs. 1,50,000/- | Equivalent to CD or Rs. 1,,00,000/- whichever is less |
|
(b) Basic Pay Rs 30001/- to Rs. 50000/- |
Rs. 2,00,000/- | -do- |
| (c) Basic Pay Rs. 50001/- to Rs. 60000/- |
Rs. 2,50,000/- | -do- |
| (d) Basic Pay Rs 60001/- and Above | Rs. 3,00,000/- | -do- |
5. Payment of Regular Loan
The Regular Loan, if sanctioned, is to be repaid in maximum 50 monthly equal installments. The repayment commences from the very next calendar month from the month in which the loan is released. However, if any member desires to repay loan installment, over and above the prescribed installments, at any point of time, during the pendency of loan or liquidate his/her outstanding loan prematurely, he/she can do so for which no charges shall be levied.
6. Rate of Interest on Regular Loan
The rate of interest on regular loan is charged @ 12% per annum which is to be paid by the loanee, on monthly reducing rate. The Interest is calculated on the basis of the outstanding regular loan shown in the member’s personal ledger on the last day of each month. It is also clarified that if a member gets loan on the last day of the month, he/she is liable to pay interest on the whole amount in the very next month. The Loan installment, as committed by the member, along with Interest due thereon is to be repaid, in cash, simultaneously on or before 10th of every month. If a member wants to repay his/her dues through cheque, he/she can do so by depositing the instrument in the Society’s Office not later than 7th day of every month.
7. Rebate of Interest on Regular Loan
Society allows rebate @ 15% of the total interest deposited by the eligible member during the pendency of the loan for which following norms are being adopted:
- The loanee must have liquidated his/her Regular Loan by repaying his/her admissible loan installment against Principle Amount along with interest accrued thereon regularly and timely. Member who prematurely pays off the debt is also eligible to claim the rebate on interest unless his/her previous repayment, against the loan amount, is found in order.
- The loanee must have submitted the claim, in this regard, in the prescribed form, within 30 days from the date of last installment of Regular Loan paid.
- The Rebate must be collected within 60 days from the date of submission of Application, in person, NOT through any representative. After that the rebate stands forfeited.
8. Procedure for sanctioning the Regular Loan
The Society adopts the following course of action in sanctioning the Regular Loan to its members:
- As soon as member submits the RLAF in the Society’s office, it is registered immediately and given a ‘Waiting Number’.
- All such RLAFs are scrutinized by the Staff and produced before an empowered ‘Loan Committee’ constituted by the Managing Committee in its meetings to be held on every 3rd Saturday of each month. The Committee has been entrusted with the task to examine such RLAFs thoroughly and make recommendations to the Hony Secretary for sanction of Regular Loan.
- Thereafter, the Society’s staff puts these RLAFs, to the Hony Secretary, in accordance with their seniority in the waiting list, who in turn, passes appropriate orders, in this regard, in the light of the Society’s financial position, at a point of time.
- The concerned members are also requested telephonically to collect their loan cheques.
- The Regular Loan cheques are issued to concerned loanee on and after 10th day of every month.
- As soon as, the cheque for the loan is released to the loanee, an SMS alert is automatically sent to the Member’s Registered Mobile Phone.
9. Out-of-Turn sanction of Regular Loan
The Managing Committee reserves the right to sanction Regular Loan to the members, on out-of-turn priority basis, taking into consideration following nature of requirement put forth by the members producing relevant copy of the documents.
- Articles to be purchased for Self Marriage or marriage in the family.
- Any other reason of urgent nature.
10. Recovery from defaulter members & imposing penalty
The following course of action is being taken to deal with defaulter members:
- A letter from the Society is sent to the members who fail to make repayment of loan for two consecutive months for taking corrective steps to make regular repayment of loan. A copy thereof is also marked to his/her Sureties for their information.
- A request is also forwarded to their respective Drawing & Disbursing Officer/Pay & Accounts Officer, as case may be, for carrying out recovery of Cooperative Society’s dues from the monthly salary of their dues in accordance with the Rule 76 (read with Rule 79) of the CGA (R & P) Rules, 1983.
- Recovery of outstanding dues from the chronic defaulters’ are also made proportionally from their concerned Sureties.
- Penalty is also imposed, as per Society’s rules, in vogue.
- A sum of Rs 200/- is also charged from the members whose cheques are bounced by their bankers. Their action also attracts relevant provisions under Section-138 of the Negotiable Instrument Act, 1881, as amended time to time, if remedial measures are not taken by them in spite of drawing their attention in this regard. The facility to receive Society’s dues through cheques shall also be withdrawn from such members for one Financial Year.
SHORT TERM LOAN
1. Submission of Short- Term Loan
A member, who desirous to get Short Term Loan, has to apply in the Society’s prescribed Short Term Loan Application Form (SLAF). This Form can be obtained from the Society’s Office by paying Rs 5/- on account of its cost. It can also be down-loaded from the Society’s website (www.geuctcs.com). In this case, the member has to deposit its cost, in cash, with the Society’s Office, at the time of submitting the completed Form.
2. Procedure for filling up the SLAF.
Before submitting the Form, members are requested to adopt following procedure:
- Go through the SLAF very carefully and cautiously.
- Complete all relevant entries very neatly.
- Put signatures (not initials) at the requisite places.
- Produce one surety from an eligible member. Get the relevant columns filled by them from their own hand-writing. No abbreviations should be used against entry meant for Surety’s Drawing & Disbursing Officer or Pay & Accounts Officer.
- Over-writing, if any, must be attested by the Applicant.
- One recent passport size photo to be affixed at the top of the Form.
3. Eligibility Criteria for obtaining Short-term Loan
Society grants a maximum Short Term Loan of Rs 50,000/- in addition to the Regular Loan. The amount of Short Term Loan is allowed depending upon member’s deposits i.e. equivalent to 100% of the member’s Share Money and Compulsory Deposit subject to a minimum of Rs 10,000/-. The Short-Term Loan, if sanctioned, by the Competent Authority, is disbursed upto Rs. 19,000/- in cash only on 5th, 6th & 7th day of each month. Loan amount more than Rs. 19,000/- will be disbursed through cheque as per the guidelines of RBI. However, after reviewing availability of funds, STL applications will also be disposed of after 15th day of each month. In case of holidays occur, in between, the Society’s next working day (s) shall be taken into account.
4. Interest rate of Short Term Loan.
The rate of interest on Short Term loan is charged @ 12% per annum which is to be paid by the loanee, on monthly reducing rate. Other conditions, in this regard, as applicable to Regular Loan, are similarly applicable for Short Term Loan.
5. Repayment of Short Term Loan.
The Short Term Loan, if sanctioned, is to be repaid in maximum 25 monthly equal installments. Other conditions, in this regard, as applicable to Regular Loan, are similarly applicable for Short Term Loan.
6. Rebate on Interest on Short Term Loan.
No rebate is allowed on interest to Short Term Loan.
7. Recovery from defaulter members & imposing penalty.
The procedure for recovery of Short Term Loan and imposing penalty are same as adopted for Regular Loan.
INTEREST RATE ON COMPULSORY DEPOSIT (CD) AND DIVIDEND
In the light of the decision taken in the AGM held on 03/07/2016, the Secretary has declare the interest rate for the year 2016-17 @ 6% and Dividend on Share Money and LLSM for the F/Y 2016-17 @ 7% and 6% respectively. The interest on CD amount has been credited to eligible member’s ledger on 31-03-2015.
REGULARITY INCENTIVE
The Society, in addition to paying Dividend, also gives Regularity Incentive (RI), normally known as ‘Gift’, every year to its eligible members before ‘Diwali’ Festival.
4. Interest rate of Short Term Loan. It may be mentioned that the Society never felt any need in the past to avail this opportunity due to its solid financial status.
DEPOSAL OF RESIGNATION AND DEATH CASES
1. Members wishing to tender resignation from their primary membership, they must have to adopt following procedure:
- Application must be submitted in the Society’s prescribed form supported by original Share Certificates. In case, Share Certificates are not available, an Affidavit on Rs 10/- Stamp Paper, duly attested by the Notary Public should be produced. The Draft of Affidavit may be collected from the Society’s Office.
- Before tendering resignation from the primary membership of the Society, members are advised to get clearance from Society’s office on the point of Surety (s), if any, discharged by them in favour of any loanee in the past. They must also ensure to submit alternate surety, in case of need.
2. The following procedure is being adopted for disposal of Death cases:
- Intimation, in the Society’s prescribed Form, regarding untimely death of a member is accepted from the next-of-kin of the deceased member supported by an attested copy of Death-Certificate issued by the Competent Authority.
- Payment pertaining to deceased members is released to the next-of-kin through cheque in his/her favour in person. No authority letter is accepted for this purpose.
- Society’s outstanding loan can be waived off out of the Society’s Bad-debt Fund, subject to the condition that such member must have paid Bad-debt charges at the time of taking Regular Loan, after adjusting death gratuity, if applicable.
3. Resignation and Death cases are being taken up for disposal on every 2nd Saturday of the month. In case of holiday falls on this day, next working day shall be treated for this purpose.
SOCIETY’S OFFICE FUNCTIONAL INFORMATION
The Society’s offices are well equipped with modern facilities. All its records and functions have been computerized with adopting pace of changes in the Information Technology. Air- conditioners and Electric Generation Set for power back up have been provided. The offices have been made under CCTV surveillance having preservation of its footages for such a period as needed by the Society.
The Society’s Office functions from Monday to Saturday from 1100 hrs to 1900 hrs with half-an-hour Lunch break from 1430 hrs to 1500 hrs. However, cash transaction remains operative from 1130 hrs to 1830 hrs. The Society observes holidays in accordance with the pace of the Gazetted holidays being declared by the Central Government in Delhi every year. In view of this, not only has the office staff been given personal Insurance but the offices have also been insured against theft, arson and fire.
WELFARE MEASURES
The Society undertakes following philanthropic activities in order to discharge its Social obligations:
- Grant of Rs 1100/- on Superannuation Gratuity on production of Pension Payment Order.
- Sagan on marriage to tune of Rs 1100/- on submission of written application supported by valid document. As a member, both husband and wife can avail this facility.
- Death Gratuity of Rs 15,000/- to the next-of-kin of the deceased member on production of copy of valid Death Certificate.
- Meritorious cash award to the children securing more than 90% marks in class XIIth Standard.
- Rs. 5,100 is given to the member of the Society who is blessed with a Baby Girl.
RESERVE FUND
This fund is being maintained as per Audit requirements.
STATUTORY AUDIT
The Statutory Audit for the Financial Year 2014-15 was conducted by M/s Anand & Co, a Chartered Accountants’ Firm, duly empanelled with the Registrar of Cooperative Societies, Govt of NCT of Delhi. The auditor’s report is submitted to the RCS periodically.
CASH RETENTION LIMIT
The present cash retention limit, as approved by the RCS, is Rs 2 lakh which is meant for timely disbursement/disposal of Short Term Loan, Resignation and Death cases.
GUIDELINES FOR SURETIES
Sureties are requested to go through the laid down conditions in the Surety Bond, before discharging it in favour of loanee.