Hi, welcome to this article.

Do you want to know about the Society loan? if yes then you have come to the right place, in this article we will talk about society loans and also other information which is related to your query

I hope that in this article you will find all the information which you are generally not finding in your mind. To present all these facts in front of you, help has been taken from RBI, HDFC and other government financial websites.

In this article, we will talk about different types of society loans, the loan process, interest rates and the documents which is required for the loan

Before knowing what is society loan, it is very important to understand what is a cooperative society. 

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What is a cooperative society

A Cooperative Society is a type of community or organization which is controlled by the members of the society. This type of society is built by the people for the people with the people.

The concept of a cooperative society is not new, it has been running all over the world for a long time. where everyone has a common goal.

This type of society is seen in every single state in India but the rules and conditions of the society are different in all the states.

Let us try to understand with the example of a LOAN.

If you are from a village, then someone in that village needs a loan to study, needs a loan to do farming or needs a loan to do business.

To solve all these problems, the people of the village unite and collect money from everyone and give loans to those who need it and help each other.

And the interest rate that is received at the time of return, that interest rate is shared with everyone or is kept by the committee for further progress.

What Is a society loan

A Society loan is a type of loan which is provided by the cooperative society. You can use this loan acording to your convenience.

This loan is provided only to the people who are members of society and the interest rate of this loan is slightly less than the traditional bank but sometimes it also depends on the society.

But nowadays there is cooperative bank in every state of India where you can apply for the different loan according to your convenience.

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Types of society loans in India

There are many types of loans such as –

1. Personal Loans
2. Agricultural loans
3. Business Loans
4. Housing Loans
5. Consumer Loans
6. Educational Loans
7. Microfinance Loans etc

Personal Loans

Personal loans are provided by different societies to their members, such as if someone who has become ill, someone needs money for an emergency, school fees, etc.

Agricultural Loans

This loan is provided by agricultural societies if someone has to buy seeds for the farm, buy fertilizers and you want some products related to the farm, then you can take this loan.

Business Loans

The society also provides business loans to its members, if someone wants to start their business, someone wants to expand their existing business and wants to buy some goods for business, then they can apply for this loan.

Housing Loans

This loan is provided by housing societies, You can avail of this loan if you want to construct, buy, or renovate a house or apartment.

Consumer Loans

Consumer loans are offered to people who want to buy consumer goods such as electronics, furniture, etc.

Educational Loans

Educational societies provide these loans to their members for college education and training programs

Microfinance Loans

Societies provide loans to their members for personal and small businesses.

Society loan interest rate in India

The society loan interest rate in India depends on which society you have taken the loan from and also depends on the loan type.

Society loan tenure in India

Loan tenure also depends upon the societies from where you take the loan

How to get society loan

If you want to take a cooperative society loan  You have to go through some steps-

• Research the societies and cooperatives
• Find the eligibility criteria
• Prepare your application
• Apply for loan
• Wait for decision

Research the societies and cooperatives

You have to find societies and cooperatives around your home or area, otherwise, you can also find cooperatives online

Find the eligibility criteria

You will have to see once the eligibility criteria are given by the society. You will have to know all the details like credit score, interest rate, loan amount, loan tenure and what you need to be a member

Prepare your application

If you have found the society and you are eligible for the loan, then collect your necessary documents and be ready for the application

Apply for a loan

Now you can apply for the loan and you be ready if society wants to know some more information from you about your loan, then all the facts will have to be given.

Wait for the decision

The society will review your loan application and tell you whether you are eligible for the loan or not

Documents required for society loan

All societies require different documents as each society has different rules and regulations. But there are some common documents that most societies ask for

1. Application Form
2. Identity proof
3. Address proof
4. Bank statement
5. Employment Proof
6. Property documents

Final conclusion about society loan

In most societies, if you want to take a loan, then you must be a member of that society. This loan is very good option for those people who want to take a loan at a low-interest rate.

How did you like this article, if you want some more details about society loans, then you can speak in the comment section or by mail. Thank you

FAQs:

Q1. Can I get a society loan if I am not a member of the society?

 In most cases, only members can get a loan from the society

Q2. How long does it take to get a society loan

  It depends on the society from where you will take the loan and how much you will take.