1.

1 About the society

Name of the Society: Janshakti Multi State Multi Purpose Co-operative Society
Ltd. is a regd. Society from Government Of India. Under MSCS act 2002. JMCS
has Authorised Share of 1000000000/- (One Hundred Crore Only) for 12 Major
States Of INDIA.

Definitions:

I. Act or MSCS Act means the Multi-State Co-operative Societies Act, 2002 as
amended from time to time.

II. Rules means the Multi-State Co-operative Societies Rules, 2002 made under
this Act, and amended from time to time.

III. Registrar means the Central Registrar appointed by the Central Goverment in
realtion to Multi-State Co-operative Societies.

IV. Bye-laws means the Bye-laws of the Janshakti Multi State Multi Purpose
Co-operative Society Ltd. for the time being in force which have been duly
registered or deemed to have been registered under this Act and includes
amendments thereto which have been duly registered or deemed to have been
registered under MSCS Act, 2002;

V. General Body mean all the members of the society.

VI. Board means the Board of Directors of the Society.

VII. Member means a person joining in the application for the registration of a
Multi-State Co-operative Society and includes a person admitted to membership
after such registration in accordance with the provisions of this Act, the rules and
the bye-laws;

VIII. Reserve Bank means the Reserve Bank of India constituted under the RBI
Act 1934-(2 of 1934);

IX. Co-operative Year means the period from 1st of April to 31st March;
1
X. "Multi State Cooperative Society" Means a society wit objects not confined to
one state and registered or deemed to be genrated under any law for the time being
in force letting to such society.

1.2 Objects and Functions:

a) Objects:
I. The principal object of the society will be to promote the interests of all its
members to attain their social and economic betterment through self-help and
mutual aid in accordance with the co-operative principles.

II. To accept deposits of money from the members of the Society for the purposes
of lending to members of the society and investment as per Act.

III. To set up dairy on proper and scientific lines and for that purpose to purchase,
hire, take, on lease or otherwise acquired dairy equipment including milk
recording and milk testings equipments.

IV. To undertake welfare activities for members, their families and employees for
the promotion of their moral, educational and physical improvement.

V. To undertake and organize, seminars, workshops symposium, studies, surveys,

feasibility reports, exhibitions in connection with micro credit, and dairy
development.

b) Functions:
In furtherance of the above objects, the society may undertake any or all the
following activities:-
I. Ensure compliance of the co-operative principle;

II. Provide specialized training, education and data-based information;

III. Assist members in organizing self-help;

2
IV. Provide management development services on behalf of its members.

Authorized Share Capital:

The authorised share capital of the society shall be Rs. 1000000000/- (One
Hundred Crore Only) which shall comprise of One Crore shares of the face value
of Rs. 100/-.

Sources of Funds:

The society may receive funds from any or all the following sources:
I. Admission fee;

II. Share Capital;

III. Loans and deposits;

IV. Grants-in-aid;

V. Donations;

VI. Contributions;

VII. Subscriptions;

VIII. Profit.

Deposits:

3
I. Deposits may be received from members of the society only at any time within
the limits determined under the MSCS Act and Rules, 2002 on such rates of
interest and subject to such rules and regulations as may be fixed by the Board of
Directors and also subject to the directives issued by the Reserve Bank of India in
this behalf from time to time.

II. Deposits may be received on current, savings, fixed, recurring, and cumulative
and under any other special scheme/s.

Restrictions on Borrowing:

(Section 67 of MSCS Act, 2002) The society may receive deposits, raise loans and
receive grants from external sources to such extent that the total amount of
deposits, loans and grants received during any financial year shall not exceed ten
times of the sum of subscribed share capital and accumulated reserves minus
accumulated losses.

Reserve-Fund:

The Reserve Fund shall be separately invested in government and trustee securities
or other approved securities or in fixed deposits with the District Central Co-
operative Bank or the State Co-operative Bank.

4
1.3 TYPES OF ACCOUNTS
Current Account

Minimum Balance- 10,000.

K.Y.C. Compulsory.

Nomination Facility available and provided.

Single and Joint Account Option.

AccountOperationasperMandategivenbyBoardResolutionofCompany/Orga
nization/Firm/Institute/Society.

Unlimited Transaction.

Interest free Loan for 7 days up to 5 times of Average Balance.

Pass Book Issued.

Salary Account opened for employees of Current Account holders.

Optional Facility for Accidental Insurance to Key man of Organizations

as filled by form and declaration

Get to gathers of all Current Account Holders at every Six Months so that
they can interact each others and make contact for their Business and Trade.

Suggestions discussed at every Six months meetings

Loan Facilities available on Current Account.

Over Limit facility provided.

Pick up and Drop facility provided.

On line facility to check Transactions.

Statement provided at every Six Months.

5
 Organize seminars, workshop, and exhibitions specially for Current
Account holders.

GENERAL SAVING ACCOUNT

1. Minimum Balance- 400

2. Interest- 4% of Simple Interest.

3. K.Y.C. Compulsory.

4. Joint A/c Facility.

5. Min Transactions- 8 Transactions are allowed within one Quarter.

6. Nomination Facility available and provided.

7. Pass Book Issued.

LADIES SAVING ACCOUNT

1. Minimum Balance- 200

2. Interest- 4.15% of Simple Interest.

3. K.Y.C. Compulsory.

4. Min Transactions- 8 Transaction are allowed within one Quarter.

5. Loan Facility on Group of Ladies.

6. Nomination Facility available and provided.

7. Pass Book Issued.

SENIOR CITIZEN SAVING ACCOUNT

1. Minimum Balance- 150

6
 2. Interest- 4.25% of Simple Interest.

3. K.Y.C. Compulsory.

4. Pick up Drop facility.

5. Single and Joint A/c option.

6. Pass Book and Cheque Book provided.

7. Unlimited Transaction.

8. Nomination Facility available and provided.

STUDENT SAVING ACCOUNT

1. Minimum Balance- 150

2. Interest- 4.00% of Simple Interest.

3. K.Y.C. Compulsory.

4. Proof of Education is compulsory

5. Pass Book Issued.

6. Min Transactions- 8 Transactions are allowed within one Quarter.

7. Nomination Facility available and provided.

SALARY SAVING ACCOUNT

1. Minimum Balance- 0.

2. Minimum 15 persons with 1.5 lakh.

7
 3. K.Y.C. Compulsory.

4. Pass Book Issued.

5. Fund Transfer, Loan Facilities.

6. ECS facility for JMCS.

7. Min Transactions- 8 Transactions are allowed within one Quarter.

8. Nomination Facility available and provided.

9. Interest- 4.00% of Simple Interest.

Recurring deposite (RD)

RD means Recurring Deposite which will start from monthly to yearly and
from 2 years to 9 years with accidental benefits.

No TDS on earned interest.

Loan facility.

Daily Deposite Account

You can start your saving on daily basis and get benifits of higher returns .

Loans facility also provided .

Fixed Deposite

Fixed Deposite always seems as locked Deposite. But we at Janshakti gives you
option For Fixed deposite as per your Comfort.

Bachat Patra

8
Bachat Patra makes your money DOUBLE, TRIPPLE and FOUR times as per
plans term and condition.

No TDS on earned interest.

Loan facility.

MIS

In this plan you will get income from 500rs to 5000rs per month .

Directly to your Account bu ECS facilities Accidental facilities.

Tax free income (NO TDS deduction).

After Completion Of MIS Plan, Invested Amount returns to investor by ECS,

RTGC.

9
1.4 Types of Loan Accounts

LOAN is always assumed as burden, but we at JMCS (Janshakti Multi State Multi
Purpose Co-Operative Society Ltd) believe that we offer loan to generate your
income, to increase your Business & Trade. Our loan policy is very clear that we
offer loan against your experience, skills, properties, securities after detailed
verification. We provide Micro Loans after satisfaction and all formalities. Our
prime object is to provide small and micro loan with self and mutual aid in
accordance with co-operative principles. We offer loan from short term to medium
term and long term.

1. Loan on Gold and Silver.

2. Instant Loan against Gold and Silver.

3. 100% security of your Gold and Silver as envelope sealed with signature of
both.

4. Photographs of owner with application of Loan.

5. Loan on value declare by valuers.

6. Easy Installment.

7. Minimum Documentation.

8. Industrys Best Rate.

Loan on Insurance Policies.

We provide you Loan against surrender value of your Insurance Policies. Subject
that Insurance Policies assign to Banks.

10
 Loan on Shares, Securities, Debentures.

We provide you Loan against Securities, Shares and Debentures of A grade and
reputated Companies.

Loan on F.D.s and Pledge of Government.

We provide you instant Loan against your Fixed Deposit with the National, Private
or Co-operative Banks.

Loan on Warehouse Receipts.

We are offering loan against your stock at warehouse. It will benefit the Farmers or
Traders on seasonal corps.

Vehicle Loan.

Our focus mainly on Commercial Vehicle or Vehicle who add Income to your valet
so that you can earn from Loan. We are focusing on Vehicle Loan with suitable
rates and categories.

Home Loan.

Home Loan is Long Term Loan against the title cleared properties with Motation
Certificate and N.O.C. from concerned Authorities and Builders.

Industry and Mercantile Loan.

We want to give Industrial and Mercantile Loan for trained and skilled applicant
with experience of at least 3 years at the same Industry. Dairy and Agriculture
Industry is on Priorities. Rural Small Industry is also focused.

Loan on all Plans of JMCS (Janshakti Multi State Multi Purpose Co-
Operative Society Ltd)
We are offering Loan against your Deposit with JMCS (Janshakti Multi State
Multi Purpose Co- Operative Society Ltd.) as per Plans term and condition.
11
1.5 About Advisor

As An Advisor
Give Wings To you Ambitions Make A Rewarding Carrer With The Govt.
Approved Society.
As An Advisor the only institute which offers unlimited Income & Multiple
Benefits in the Form Of

12
2.1 Objectives of the project report:
The follows are the important objection:
1. To make detailed study of flow of credit provided by the co-operative
society.
2. Effective utilization of service by the members.
3. To study the problem connected with the credit facilities provided by the
society.
4. To study establishment, growth and progress of service provided by the
society.
5. To know the general opinion of the customers about the society.
6. To express our own opinion about the societys developing, services to
attract and hold the customers.
7. Togo into their depth about the problem faced connected with the credit
facilities provided.

2.2 Area of study:

Janshakti Multi State Multi Purpose Co-operative Society Ltd. Is selected and
their information about the opinion towards the societys functioning are collected.

The project report aimed at giving analysis on credit facilities in general and
analysis of society from customer or members point of view as the society this co-
operative society is established in.

2.3 Methodology:
The data is collected for the preparation of this project report includes both
primary and secondary data. The primary data is that the secretary of the society.
Directors of the society and the societys staff is personally interviews to collect
information about the credit facilities provided by the society to the study.
13
 Secondary data has been collected throng survey the survey was conducted;
questionnaire was prepared and passed to the selected customers which reveal the
customer idea about the society.

2.4 Benefits of study:

1. We can get a clear idea about the credit facilities provided by the society.
2. The report is helpful in knowing about the customers wants about the
societys service.
3. The study given us to know the performance and growth of the society.
4. By preparing this project report the study helps us in coming to our own
conclusion about the societys and to write our own suggestion for its
improvement.

2.5 Limitations of project report:

There are some limitations in doing project report, they are as follows:
1. Here we cannot contact all type of customers.
2. Some customers will not give correct opinion about the survey.
3. Accuracy of this project report is limited because of factors like limitation of
time.

FINDINGS

14
 Source of Fund:
The main source of fund of this society is share capital collected from share
holders which is limited to Rs.50crores and with 4500 members Acceptance of
deposits from members. Its own funds which are created out of profits and
borrowing from district central co-operative banks in case of need.

The Society collects surplus money from the members as deposits for the
safety of the public, money collected are preserved by banks and interest at a
certain rate is given on the amount of deposits, the deposits are beneficiary because
they get a certain rate of interest on deposits, besides the safely of their amount on
the other hand, the society can earn some money on the amount collected in the
form of deposits. To suit the various requirements of the depositors the society has
introduced different schemes. They are as follows:
1. Savings Deposits
2. Current Accounts
3. Fixed deposits
4. Recurring deposits
5. Shiva Yojana Nidhi
6. Pigmi deposits.

The Society has collected different types of deposits form 2011-12 to 2009 are
as follows.

Table showing various types of deposits collected by society:

Sl. Types of Deposit 2011-12 amt 2012-13 amt 2013-14 amt 2014-15 amt 2015-16 amt
No in lakhs (Rs) in lakhs (Rs) in lakhs (Rs) in lakhs (Rs) in lakhs (Rs)
1 Savings Deposits 266.83 290.98 396.85 433.64 386.94
2 Current Accounts 12.96 15.84 45.65 42.69 14.24
3 Fixed Deposits 18.98 10.48 27.16 37.90 25.18
4 Recurring Deposits 1.11 1.12 1.96 1.80 1.31
5 Janshakti Yojana 10.85 11.89 6.46 2.74 2.32
6 Pigmi Deposits 55.44 71.82 86.78 97.10 128.74
Total 366.17 402.13 564.86 614.87 558.73

15
 From the above table we can conclude that from 2011-12 to 2012-13 the
total deposit has been increased of 35.96 lakhs and from 2012-13 to 2013-14. The
total deposit increased to 162.73 lakhs and the year 2013-14 to 2014-15. The
deposits were increased to 50.01 as compared to previous year the deposit
collected got steady growth. In the year 2014-15 to 2015-16 the deposits got
decreases. It has been came down to 56.14 lakhs.

Table showing total deposits collected by the society from 2011 to

2015 (in lakhs.)
Year Deposits (Rs)
2011 366.17
2012 402.13
2013 564.86
2014 614.87
2015 558.73

Representation of Total Deposits Collected by the Society

700
614.87
600 564.86 558.73

500
402.13
400 366.17

300

200

100

16
Lending of the Society:
Important types of loans provided to its members are as follows on members
own responsibility it provides Rs.2000/- without interest for the loan amount
exceeding Rs.1000/-, It provides loan upto Rs.5000/- at 10% rate of interest.

For members, who donot have permanent properly it provides loan

amounting to Rs.30000/- on boil of other financial persons. For members who
have permanent properly, it provides loan upto Rs.80,000/- at 12% rate of interest
for both.

Loan is also given on the surely of the members house property amounting
upto Rs.10,00,000/- the rate of interest charged is 15%.

Society provides loan for constructing Building and housing loans/

expansion/ purchase upto Rs.15,00,000 the rate of interest charged is 13%.

Society provides loan on the surely of land of the members amounting upto
Rs.10,00,000/- the rate of interest charged is 15% and can repay the loan amount
in 100 equal monthly installment.

The society provides the loan on the surely of gold ornaments for a
maximum amount of Rs.1,00,000/- the loan is given on the basis of 65% of the
appraises value of the gold. The rate of interest charged is 11% the amount should
be repaid within 6 months on daily basic.

Vehicle loan is provided by the society on the surely of vehicles, for 2

wheelers and 3 wheelers the loan amount will be 80% of the on the road value and

17
4 wheelers the loan amount will be 75% of the on the road value with 13% rate of
interest for both repayable in 40 and 60 installment respectively.

The society gives loan on the surely of fixed assets upto Rs.10,00,000 with a
rate interest of 13% and it gives loan on surely of salary of its staff the interest rate
is 15% and it provides loan to its member on the basic of deposits at 12% interest.

Loan is also given on the surely of national saving certificates (NSC) and
KVD.
This loan is goven on 70% of the face value of the NSC at 13% interest
repayable with in the due date of NSC & KVD.
Loan is also given to improve the members business the minimum amount
of loan is Rs.50,000/- and maximum limit is Rs.3,00,000/- with interest of 15%.

Table showing total lending of the Society

Year Loan amount

(in Rs. in lakhs)
2011 107.60
2012 157.67
2013 188.16
2014 188.74
2015 198.30

18
Representation of loans and advances given to the members from
2005 to 2009

250

198.3
200 188.16 188.74

157.67
150
107.6
100

50

From the above table, we come to know the total lending of the society from
2011 to 2015. As the loans and advances given are increasing year by year upto
19.8 crores this shows the improvement and lending capacity of the society.

Progress of the Society:

Following is the table showing the Present financial position of the society
in the year 2009.
Particulars Rs. in lakhs
Share capital 51.75
Reserve fund 39.02
Deposits 194.94
Advances 198.30
Net profit 11.32
Dividend 10

Following is the table showing statement of progress of society from 2005 to

2009

19
 Particulars 2011 2012 2013 2014 2015
Share capital 44.73 45.49 46.22 48.87 51.75
Reserve fund 8.18 12.00 28.30 33.58 39.02
Deposits 133.00 142.00 147.00 194.00 195.94
Advances 107.60 157.67 188.16 188.64 198.30
Members 3558 3455 3451 3508 3557
Net profits 7.71 7.82 8.86 9.15 11.32
Dividends 6 7 7.5 9 10
Investment in 39.13 27.71 21.41 31.20 30.00
banks

From the above table we can say that from the year 2011 to 2015 every item
has increased except number of members; it got decreased from 2011 to 2014 and
again it increased to 3557 and investments in other banks also decreased and also
fluctuated in 2014 and 2015, it increased at the last two years.
Flow of credit in Janshakti Multi State Multi Purpose Co-operative
Society Ltd.:

Meaning of Credit:

Credit means good opinion founded on the belief in persons Veracity,

integrity, ability and virtue. Credit refers to the confidence in persons willingness
and ability to pay. A persons credit depends on three Cs-Character, Capacity and
Capital. It is a combination of all these qualities, which go to make a mans credit.
He must be honest and fair in his dealings with others; he must also have capacity
for making his business a success; and he must be a man of substance. Credit is
thus an attribute of the borrower.

Definition:

20
 The word Credit has been derived from the Latin word Credo meaning
I believe. Credo, however is a combination of the Sanskrit word, meaning
Trust and the Latin word do meaning I Place
According to Wingfield streford, credit is nothing more or less than faith and
faith no less on the stock exchange than before the alter, is the substance of
things hoped for, the evidence of things not seen.
According to William Stanley Jevons, credit is nothing but the deferring of
payment.
According to Cole, credit is purchasing power not derived from income, but
created by financial institutions either as an offset to idle incomes held by
depositors in the banks, or as a net addition to the total amount of purchasing
power.
It is in this sense that the term credit is used in current monetary discussions.

Classification of Credit:
Credit may be either for production or for consumption. The line between
business and consumption credit is not easy to draw. Even the purpose of the loan
does not represent as the whether it is business or consumption credit. It is easier to
distinguish a purpose if a complete financial record of the farmer is available but
even then may be difficulty in affixing an appropriate label to some loans.

Productive credit is that which is employed to stop a loss effect on

economy or to create something materially valuable the savings or gains which
result ought eventually be equal the debt. Hence, no need to be afraid of this from
provided the amount and the extent be judiciously limited to availability of prompt
payment. As is popularly said, productive credit makes its own security and
liquidates itself.

Consumption credit, on the other hand is the straw that beakes a camels
back. Says T.N.Carves. It is undoubtedly a bad practice to borrow money with
21
which to buy articles of consumption.. And gives a form mortgage as security
because it encourages over borrowings and it may be more costly to the borrower.

The Reserve bank of India has adopted the following classification according to
purpose of credit.
1. Agricultural purpose:
a. Short term Credit:
For purchase of seeds, manure and folders; payment of rent, wages, revenue,
cess and other charges, irrigation of crops hire charges of pumps.
b. Medium term Credit:
For purchase of livestock, bunding and other land improvement. Repairs of
agricultural implements modenery.

c. Long term Credit:

For the purchase of land, construction of new wells development of new
irrigation sources other capital expenditure on agriculture.

2. Non-form business purpose:

a. Short term Credit:
Repair of production equipments and furniture current expenditure is non-
form business.

b. Long term Credit:

Purchase, construction, addition and repair of building for non-forms
business purchase of form equipments transport equipments and furniture.

3. Family Expenditure:
Purchase of Domestic utilities clothing etc. medical education and other
family expenses.
Purchase or construction of Residential houses.
22
 Expenses relating to marriage and other ceremonies.

4. Other purpose:
a. These include purchase of buildings and ornaments shares and
debentures of companies, co-operatives.
b. Deposits with co-operative societies, private money lenders, traders.
c. Unspecified purpose and payment of old debt.

Credit facilities or loans to members:

Introduction:
The Janshakti Multi State Multi Purpose Co-operative Society Ltd. is not
only accepting deposite from the members. But it is also providing loans to
formers, Business mens, Small traders, Salary earners at the reasonable rate of
interest.

In the Society, the Secretory knows from the experience that all the
depositors does not withdraw all their money at the same time. Moreover, has
when there are withdrawals, the society gets deposits fromt eh existing as well as
new depositors. The loans granted for fixed assets like buildings, machinery,
repayable within 3 to 4 years. The secretary stipulates periodical repayment of
installment towards liquidation of these advances thus by a proper employment of
funds, the secretary is able to keep the funds liquid or repayable at short notice and
is in a position to meet the demand of his depositor as members.

Procedure for Lending loan:

The following procedures have to be followed before providing loans.
23
1. Eligibility: The eligibility to take loan is membership from the society.
2. Filling the loan application form.
3. Contents of the application form:
A loan application form contains 4 following types.
a. Bio-data:
The bio-data of the applicant and bailee should be collected. it must
be filled with name of the applicant and bailee, business profession, address
age. If he has became a member of the other society or not if any loan is
taken from other sources period of loan etc.

b. Particular of the applicant:

The particulars of the applicant consist of two phase one should be filled
by the applicant and other phase should be filled by the office staff. This
column contains the particulars like name of shareholders in the applicants
family type of loans etc.

c. Office note:
It contains date of membership of the applicant and bailee, share amount
paid, if any penalty paid is post if bailee has paid any penalty on the loan
amount is the past is past if any loan taken and not repaid is time etc.

d. Particulars of bailee:
The particulars of the bailee column consist of the two phases, one
should be filled by the applicant, regarding particulars of bailee and other
phase should be filled by the staff this column contains the particulars like
name of shareholders in the bailee family type of loan taken by the bailee
etc.
4. Registration of application form
5. Annexure with the application:
a. Fixed assets numbers.
b. Muncipal tax receipt number.
24
 c. Receipt of the Salary, if the applicant is an employee.

Types of Credit provided to its members:

Different types of loan as credit in Janshakti Multi State Multi Purpose Co-
operative Society Ltd. by which it provides lending facilities to its members are as
follows.
1. Self loan
2. Vehicle loan
3. Business loan
4. Loan on Salary
5. Loan on Fixed deposit
6. Ornament loan
7. Building construction / Expansion / purchase loan
8. Loan on Recuring deposit.
9. Janshakti Yojana Loan
10.Loan on pigmy deposits.

Self Loan:
Self loan is a loan provided by the society to its members on members own
responsibility. Rs.2000 without interest. For the loan exceeding Rs.2000 its
provides loan upto Rs.5000/- at 15% rate of interest.

Following is the table showing total Self-loan provided to members from 2011-
12 to 2015-16
Year Total Self loan (Rs. in lakhs)
25
 2011-12 48.02
2012-13 43.93
2013-14 34.96
2014-15 22.84
2015-16 19.45

By analyzing the table the self loan is decreased year by year.

The following in the diagram showing total self loan provided by the society.

60

50 48.02
43.93

40
34.96

30
22.84
19.45
20

10

Vehicle loan:

Vehicle loan is provided by the society on the surely of Vehicles for two
wheelers and three wheelers the loan amount will be 80% of the on the road value
and 4 wheelers the loan amount will be 75% of the on the road value and 13% rate
of interest for both repayable in 40 and 60 installments respedively.

Table showing total vehicle loan provided to members from 2011-12 to 2015-
16
Year Total Vehicle loan (Rs. in lakhs)
2011-12 7.2
2012-13 6.6
2013-14 5.9
26
 2014-15 19.0
2015-16 25.4
Following is the Diagram showing total vehicle loan provided by the society:

30
25.4
25

20 19

15

10
7.2 6.6 5.9
5

Business improvement loan:

Society provides loan to improve the business of members. The minimum

amount of loan is Rs.50000/- and maximum limit is Rs.3,00,000/- with interest
charged 15%.

Following is the table showing total business loan provided from 2011-12 to
2015-16.
Year Total loan (Rs. in lakhs)
2011-12 12.55
2012-13 24.38
2013-14 36.18
2014-15 45.89
2015-16 44.12

The loan provided to business is increased year by year the members are benifited
by this loan.

27
 Diagram showing total business loan provided by the society:
50
45.89
44.12
45
40 36.18
35
30
24.38
25
20
15 12.55
10
5
0

Loan on Salary:
Society provides loan to employees who are the members of it and it is
based on the salary of the persons and the interest rate charged on this loan is 15%.

Table showing total loan provided on salary of members from 2011-12 to

2015-16
Year Total loan (Rs. in lakhs)
2011-12 1.2
2012-13 1.5
2013-14 1.3
2014-15 1.2
2015-16 0.75

Following is the diagram representing the loan provided on salary from 2011-
12 to 2015-16
28
 1.6 1.5

1.4 1.3
1.2 1.2
1.2

0.8 0.75

0.6

0.4

0.2

0
2004-05 2005-06 2006-07 2007-08 2008-09

Loan on Fixed Deposit:

The members are provided loan on their fixed deposits is which they have
the amount is it which is not available for withdrawals. So society provided this
loan at the rate of interest 12% on their deposits.

Following is the table showing total loan provided on fixed deposits

Year Total loan (Rs. in lakhs)
2011-12 2.6
2012-13 5.5
2013-14 3.8
2014-15 15.8
2015-16 13.3

Diagram of total loan on fixed deposits:

29
 18
15.8
16

14 13.3

12

10

6 5.5
3.8
4
2.6
2

Loan provided on Gold ornaments:

The society provides gold ornaments loans means on the surety of gold
ornaments for maximum amount of 5lakhs. The loan is given on the basic of 60%
of the appraiser value of gold. The rate of interest charged is 11%.

Table showing total gold ornament loan provided to members from 2011-12 to
2015-16
Year Total loan (Rs. in lakhs)
2011-12 19.9
2012-13 45.8
2013-14 72.0
2014-15 57.5
2015-16 71.8

The following diagram showing total gold ornament provided.

30
 80
72 71.8
70

60 57.5

50 45.8

40

30
19.9
20

10

Building construction / housing loan:

Society provides loans for building / expansion / purchase / construction
upto Rs.15 lakhs with the rate of interest at 13%.

Table showing the total building / housing C/E/P loan provided to members
from 2011-12 to 2015-16.
Year Total loan (Rs. in lakhs)
2011-12 3.75
2012-13 3.20
2013-14 5.40
2014-15 2.51
2015-16 2.25

From the above data the housing loan provided is fluctuated from year to year and
decreased to 2.25lakhs in 2015-16.
Diagram Representing total loan provided for housing and building C/E/P
from 2011-12 to 2015-16.

31
 6
5.4

4 3.75
3.2
3
2.51
2.25
2

Loans providing on Recurring deposits:

This type loan is provided on the deposits of members the amount deposited
is the base for this loan through this members can receive loans with a rate of
interest 2% on the amount deposited.

Following is the table showing total loan lent on recurring deposits from 2011-
12 to 2015-16.

Year Total loan (Rs. in lakhs)

2011-12 0.15
2012-13 0.23
2013-14 1.19
2014-15 0.05
2015-16 0.80

Diagram showing the total loan lent on Recurring deposit:

32
 1.4

1.19
1.2

0.8
0.8

0.6

0.4
0.23
0.2 0.15
0.05
0

Loan on Pigmy deposits:

The members who wants to deposit money daily in a smaller amount. They
provided pigmy deposits members can deposit money at the door of their house.
They can also get loan from this deposits the rate of interest charged is 13% on the
deposits.

Following table shows the total loan on pigmy deposit from 2011-12 to 2015-
16.
Year Total loan (Rs. in lakhs)
2011-12 6.7
2012-13 18.0
2013-14 16.4
2014-15 16.6
2015-16 16.18

From the above table we can conclude the loan taken on pigmy deposits are
increased in 2012-13 and no majors till 2015-16.

Diagram shows the total loan on P.D:

33
 20
18
18 16.4 16.6 16.18
16
14
12
10
8 6.7
6
4
2
0

Chart Showing Maximum limit of rate of interest provided on the deposits:

Duration of deposits Rate of interest

From 45 days to 90 days 6%
From 90 days to 180 days 7%
From 181 days to 1 year 8%
From 1 year to 2 years 9%
From 2 year to 3 years 10%
Above 3 years 11%
For Senior citizen increase 10.5%

34
 ANALYSIS OF RESPONSE

Introduction

Survey means going into the depth of the responses and collecting inner

expression for the purpose of knowing attitude of the respondents about which the

survey is conducted.

The purpose of conducting the survey is the in-depth study of the attitude of

the members and problems faced by them while dealing with the JANSHAKTI

MULTI STATE MULTI PURPOSE CO-OPERATIVE SOCIETY LTD.

For the purpose of survey questionnaire was prepared and was given to 50

members. The entire area covered by the survey is classified into different parts

and the members are given the format of questionnaire and are requested to fill it

and return to us.

The survey has been successfully carried out and the respondents are having

close contact with the society. They gave good and realistic answers to the

questions.

35
Their answers and replies are analyzed as follows:

For the purpose of survey the respondents are classified on the basis of their

age under 4 categories.

Table showing classification of members on the basis of their Age Group,

Sl.N Age group No. of Respondents %

o
1 18-25 years 08 16
2 25-40 years 25 50
3 40-50 years 10 20
4 Above 50 years 07 14
50 100
Source : Survey result

Interpretation

The above table shows that 50% of respondents are the age group of 25-40

years, followed by 20% respondents from the age group of 40-50 years, while 16%

of respondents from the age group of 18-25 years and 14% of respondents are from

the age group of Above 50 years.

Graph showing classification of members on the basis of their Age Group

36
 80

70

60

50 50

40

30

20 20
16
14
10

0
18-25 years 25-40 years 40-50 years Above 50 years

Table 2

Table showing classification of members on the basis of Gender.

Sl.N Gender No. of Respondents %

o
1 Male 30 60
2 Female 20 40
50 100
Source: Survey result

37
Interpretation:

In the above table, the response obtained from the male members is more in

numbers i.e. 60% and remaining 40% of respondents are female members who are

in less.

Sales

20

30

38
Table: 3
Table showing classification of members on the basis of their
occupation,
Sl.N Occupation No.of %
o Respondent
s
1 Business 08 16
man
2 Agriculture 15 30
3 Employees 14 28
4 Others 13 26
Total 50 100
Source: Survey result

Interpretation:
In the above table, we can find that majority of individuals belong to
professionals. i. E. 30% followed by the govt. employees who are in 28% and 26%
individuals belong to others group includes Housewife and students. While 16% of
respondents belong to business who are in less in numbers.

Graph showing classification of members on the basis of their occupation

39
30

25

20

15

10

0
Business man
Agriculture
Employees
Other

40
Table: 4
Table showing distribution of respondents according to their monthly
income.
Sl.N Income (in No.of %
o Rs.) Respondent
s
1 Below 5000 20 40
2 5000-10000 14 28
3 10000- 12 24
20000
4 Above 4 08
20000
Total 50 100
Source: Survey result

Interpretation:
From the above table we come to know that 40% of the respondents belong
to below 5000 group, while 28% of respondents belong to middle income group,
followed by 24% of respondents belong to in come group of 10000-20000 and 8%
of respondents belong to income group of above 20000.

Graph showing distribution of respondents according to their monthly income

41
 40

35

30

25

20

15

10

0
Below 5000 5000-10000 10000-20000 Above 20000

Table 5
Table showing distribution of respondents on the basis of period of
Contact with the society.
Sl.No Period No.of %
Respondent
s
1 Below 2 07 14
years
2 2-5 years 19 38
3 5-10 years 21 42
4 Above 10 03 06
years
Total 50 100
Source: Survey result

Interpretation
From the above table, we can see that repondents who have contact with the
society 5-10 are more in numbers. The members who are in contact with the
42
society for 5-10 years are given god suggestions. And in the above table the
numbers of respondents who are dealing with society for below 2 years, 2-5 years
and above 10 years are in 14%, 38% and 06% respectively.

above 10 years; 6
Below 2 years; 14

5-10 years; 42
2-5 years; 38

Talbe6
Table showing distribution of repsondents on the basis of Opinion about
society services.
Sl.No opinion No.of %
Respondent
s
1 Excellent 03 06
2 Good 17 34
3 Satisfactory 30 60
4 Bad 00 00
Total 50 100
Source: Survey result

Interpretation:
In the above table, 60% of respondents sates that society services is
Satisfactory while 34% of toal repsondents state that good and 06% of respondents
states that Excellent.
43
 Graph showing distribution of respondents on the basis of Opinion about
society service.

60 60

50

40
34
30

20

10 6

0
Excellent
good
satisfactory 0
bad

Table 7
Table showing distrubution of respondents according to Borrowing of Loans.

Sl.N Occupation No.of %

44
 o Respondent
s
1 Yes 45 90
2 No 05 10
Total 50 100
Source: Survey result

Interpretation:
From the above table it shows that 90% of respondents borrow loan from the
society and remaining 10% of respondents replied that they have not borrowed any
loan from the society.

Graph showing distribution of respondents according to Borrowing of Loans.

NO; 10

Yes; 90

Table 8
Table showing classification of respondets on the basis of the Type of loan
required by the member. (ONLY APPLICABLE TO 45 MEMBERS)
Sl.No Type of loan No.of %

45
 required Respondents
1 Long term 08 18
2 Middle- term 28 62
3 Short-term 09 20
Total 50 100
Source: Survey result

Interpretation
From the above table, we can easily understood that the long-term lona
required by the members are in 18% of total respondents, while 62% of total
respondents, while 20% of the respondents requires medium and shoret term loan
respectively.
Graphy showing classification of respondents on the basis of the Type of loan
required by the member. (ONLY APPLICABLE TO 45 MEMBERS)

Short-term; 20% Long-term; 18%

Middle-term; 62%

Table 9
Table showing the classification of members on the basis of satisfaction
regarding loan facilities provided by the society.

Sl.N Satisfactio No.of %

46
 o n Respondent
s
1 Yes 35 78
2 No 10 22
Total 45 100
Source; Survey result

Interpretation:
In the above table, 35 respondents were satisfied out of 45 respondents
(78%) with the lona facilities provided by the society and remaining 22% of total
respondents are dissatisfied with loan facilities given by the society.

Graph showing the classification of member on the basis of satisfaction

regarding loan facilities provided by the society.

No; 22%

yes; 78%

Table 10
Table showing the types of loan borrowed by the members.

Sl.No Types of loans No.of %

Respondents

47
 1 Self loan 20 44
2 Business loan 03 06
3 Gold loan 07 15
4 Pigmy loan 03 06
5 Fixed deposit loan 09 20
6 Recurring deposit 01 3
loan
7 N.S.C. Loan 0 0
8 Shiva yojana nidhi 01 3
9 Vehicle loan 01 3
Total 45 100
Source; Survey result

Interpretation:
From the above table, it clear the 44% of members are borrowed Self loan
and 15% of members are borrowed gold loan, and 06% of members are borrowed
Business and pigmy loan, and 20% of respondents borrowed fixed deposit loan,
and 3% of total respondents borrowed recurring deposit, N.S.C., Shiva Yojana
Nidhi. and vehicle loan.

48
 Vehical loan; 3 Self loan; 4
Shiva Yojana Nidhi; 3 Business; 6
Recirromg deposit loan; 3
Gold loan; 15
fixed deposit loan; 20

Pigmy loan; 6

Table 11
Table showing the opinion of the members regarding interest charged on
loans.

Sl.N Opinion No.of %

o Respondent
s
1 High 05 11
2 Reasonable 40 89
3 Low 0 0
Total 45 100
Source: Survey result

49
Interpretation:
From the above table shows that 89% of respondents are satisfied with the
interest charged on loans, while 11% of membess states that interest charged on
loan by society is high. No respondents feels that society charges low rate of
interest.

High; 11%

reasonalbe; 89%

Table 12
Table showing the opinion of respondents regarding installments for the
repayment of loan.

Sl.N Opinion No. of %

o Respondent
s
1 More 07 15
2 Reasonable 35 78
3 Low 03 07
Total 45 100
Source: Survey result

50
Interpretation:
From the above table, we can see that the 78% respondents is stratified with
the installment given by the society for repayment of loan. While 26% of the total
respodents are moderately satisfied and 15% of the total respondents are
dissatisfied with the number of installments gives by the society for repayment of
loan. They need few more installement to repay the borrowed loan.

Graph showing the opinion of respondents regarding installments for the

repayment of loan

low; 7%
more; 15%

reasonalbe; 78%

Major survey findings:

Survey has been probed into the activities of co-operative society in general
and Janshakti Multi State Multi Purpose Co-operative Society Ltd. Ltd., in
particular. For the survey conducted the following are the summary of
observations.
For the purpose of survey members are classified into 4 categories i.e. 18-
25 years, 25-40 years, 40-50 years and above 50 years. The age group of 25-
40 years is more in numbers and given good suggestions, since they have
long contact with the society. The society considers the suggestions given by
senior members.
The society concentrates the female members because they are less in
number. And, it should take necessary measures to increase female members
also.
51
 The majority of members belong to middle-income group. Hence society
should concentrate on the mobilization of savings of middle-income class of
members.
Majority of the respondets are satisfied with the services provide by the
society, but till society should improve its services.
The respondents who are borrowed loan from the society are more in
numbres and there is also some of members who are not borrowed any loan
from society. Therefore, society should concentrate on those members who
are not borrowed any loan from the society.
Most of the members are required long-term land medium term loans. So,
the society increase its long-term, loans by reducing short-term, loans.
The loans facilities given by the society is satisfied to the majority of the
members but, till society should take measures to satisfy other members.
The maximum members utilize only Self loan, business loan, gold loan, and
vehicle loan. Some the society should re-arrange all those loan facilities,
which are not utilized by the members.
Interest charged on loan is moderately satisfied to members and society
further decrease its interest rate and attract more members.
The number of installment given by the society for repayment of loan is
satisfied for maximum members. So society should try to adopt new
methods to collected debts from the members.

Conclusions & Suggestions

52
Introduction
For the improvement of any organization, it should take proper action or
measures for continuous improvement on the basis of opinions given by the
respondetns and observations made during the survey the followings
suggestions have been given for improvement of performance. While dealing
with the society some of the membes are found satisfied and some of them are
found dissatisfied. However, measures should be taken to all categories of
members.

Problems and Suggestions

While doing the survey some of the members gave the opinion by
expressing their problems and some of them gave suggestions for their
problem. They are:

1. Educational Loan:
Most of the members were not properly educated. So, the society
should concentrate on the education of the members and should provide loan
facilities to the higher education.

2. Increase loan amount:

Majority of the membes are complaining about loan amount. The loan
amount granted by the society is low:
The society should re-arrange its loan facility given and those loan
schemes, which are not utilized by the members, should reduce the loan
amount on those schemes and should increase loan amount on which the
members required.

3. Tedious procedures:
The procedures made by the society for granting loans are very long
and it is difficult to borrow loan for the members who are in urgent.
53
 The society should shorten it sprovisions and procedures as possible
as low and society should give loan facilities for members who are in urgent.

4. Share capital:
To meet the above requirements and to give best services to its
members the society should increase its share capital by raising funds.

5. Entrepreneur Development:
The society must increase the amount of business loan given to its
shareholders for the purpose of increase the enterpreniual capacity of its
members.

6. Increase the number of wokers:

As per the 2012-13, nine posts are granted but society recruited only 7
workers. In order to run the society smoothly the Board must fill the granted
posts.

7. Legal Actions against Over dues:

The society must take legal and proper actions against overdue, which
helps to recover the loans, granted to members of the society.

8. Increase the penal Rate of Interest:

The society currently charging 2% more than the actual interest for the
surety loan and 3% more than the actual interest for the pledged loan. So, in
order to recover the debts in quicker way the society must increase the penal
rate of interest.

9. Adoption D.C.B. (Demand Collection Balance) register:

Hence society is already computerized it must adopt the D.C.B
register for identifying the actual over dues during the year.

10.Proper checking:
In case of providing vehicles loan the society must keep the one key
of the vehicles and one photo copy of the R.C. Book, society must write the
term WITH LOAN and must put the seal of the society on the society on
54
 the original R.C. Book. This helps to identifly and recovers the loan granted
by the society.

Conclusion
No, a doubt, Janshakti Multi state Multi purpose co-operative society ltd., is
working in the right direction. It cannot be ignored, since its establishment it
is striving hard for improving the economic conditions of the members.

At the same time it is servicing its members in various ways i.e., advancing
loans as and when needed at cheper rate of interest, collects deposits from
their savings, work for welfare of members etc.

Loan distribution and collection system is also good and majority of the
members were satisfied. Loan is allotted without discrimination members
are satisfied with the working of the society.
It is necessarily that society should always orient its activities towards
welfare of members. It is well-known fact that the main objective of the
society is EACH FOR ALL AND ALL FOR EACH. Therefore, it is
necessary that society should always aim at continuous development or
adoption, which will be more helpful to the members of its services.

The opinion of each member should be of great importance in taking steps

towards development. Therefore, research studies like the present on may
help the society to re-orient its strategy related to advancing loans, deposits
mobilizations and provision of different services.

55
 MEMBERS QUESTIONNAIRE
JANSHAKTI MULTI STATE MULTI PURPOSE CO-OPERATIVE
SOCIETY LTD. Ltd

Dear Respondents,

I am Panav Mohindra, student of final year B.com(H), Maharaja Agrasen

Institute Of Management Studies,Rohini. I am doing society members survey to
know the loan facilities provided by the JANSHAKTI MULTI STATE MULTI
PURPOSE CO-OPERATIVE SOCIETY LTD. Ltd. I will be thankful to you if
you spend your precious time to answer this questionnaire. Your response will be
kept strictly confidential.

1. Name :__________________________________

2. Residing At :__________________________________
__________________________________

3. Contact No :_______________

4. Age :18-22 [ ] 22-35 [ ] 35-60 [ ] 60 &above [ ]

5. Sex :Male [ ] Female [ ]
6. Occupation :Agricultural [ ]
Businessman [ ]
Employee [ ]
House Wife [ ]
Retired Person [ ]
Other [ ]

7. Annaul Incom :Up to 10,000 [ ]

56
 10,000 to 50,000 [ ]
50,000 to 1,00,000 [ ]
Above 1,00,000

8. How do you come to know about the society?

a) Friends [ ]
b) Relatives [ ]
c) Advertisements [ ]
d) Others [ ]

9. From how many years you are dealing with this society? _______________

10. Have you made any deposits in society : Yes [ ] No [ ]

a) If yes, what type of deposit you have made :
i. Savings Deposit [ ]
ii. Current Account [ ]
iii. Fixed Deposit [ ]
iv. Recurring Deposit [ ]
v. Shiva Yojana Nidhi [ ]
vi. Pigmy Deposit [ ]
vii. Safe Locker Deposit [ ]

11.Have you taken loan from the society: Yes [ ] No [ ]

a) If Yes, Which type of loan?
i) Self Loan [ ]
ii) Vehicle loan [ ]
Two/Three Wheeler loan [ ]
Four Wheeler loan [ ]
iii) Business Improvement Loan [ ]
iv) Loan on fixed deposit [ ]
v) Loan on Salary [ ]
vi) Ornament Loan [ ]
vii) Building construction/Expansion/Purchase loan[ ]
viii) Loan on recurring deposit [ ]
ix) Janshakti Yojana Loan [ ]
x) Loan on Pigmy Deposit [ ]

b) For which purpose :

1. Business [ ]
2. Employee [ ]
3. Construction of House [ ]
57
 4. Marriage [ ]
5. Others [ ]

12.What is your opinion about rate of interest charged on loans?

13.Hight [ ] b) Considerable [ ] c) Low [ ]

14.Time period of your loan :6 Months [ ] 1 Year [ ]

2 Years [ ] 3 Year or more [ ]

15.Reasons to take loan in this society :

Low rate of interest [ ]
Easy to get loan [ ]
Easy installment [ ]
Other [ ]
16.Are you making use of lockers provided by the society :
Yes [ ] No [ ]

17. Do you get prompt service at the counter :Yes [ ] No [ ]

18. What is your opinion on service provided by the society?
a) Excellent [ ]
b) Good [ ]
c) Satisfactory [ ]
d) Not satisfactory [ ]
19.What is your opinion on the punctuality of staff members of the society?
a) Excellent [ ]
b) Good [ ]
c) Satisfactory [ ]
d) Not satisfactory [ ]
20.Any other complaints on society functioning.
21.Any more suggestions on society.

Date: Signature
Place:

58
 BIBLIOGRAPHY

ELECTRONIC SOURCES

http://www.janshaktisociety.com
https://en.wikipedia.org
http://profit.ndtv.com
https://www.investopedia.com

BOOKS
Stoner, Freeman and Gilbert Jr. (2010) Management, 8th Edition, Pearson
Education
Ed Peelen, (2008), Customer Relationship Management, Pearson Education
India.
Paul Greenberg, (2007), CRM at the Speed of Light, 3rd edition, TMH

59