Finance & Accounting

Co-Operative Credit Societies in India: Registration and Benefits

calendar27 Jan, 2023
timeReading Time: 5 Minutes
Co-Operative Credit Societies in India: Registration and Benefits

Co-Operative Credit Societies are an excellent method to pool resources and reap the benefits of collective savings. Because of their potential to provide financial services as well as social and economic advantages, Co-Operative Credit Societies are becoming increasingly popular. Co-Operative Credit Society have been an essential part of the Indian economy for decades. Co-Operative Credit Societies are one of the choices for obtaining financial services without having to rely on conventional sources such as banks or other lending organizations.

What is a Co-Operative Credit Society?

A Co-Operative Society is a society created by a diverse collection of people with the common goal of promoting self-sufficiency. When several people work together to achieve these goals, the Society is known as a Co-Operative Credit Society. A Co-Operative Credit Society is a credit institution that is governed by its own member. The primary objective of developing the economy and Society by providing accessible credit at reasonable interest rates and financial aid to their members.

In India, there are several Co-Operative Credit Societies. Co-Operative Credit Society registration requires forming a society in accordance with the legal standards of a group of people who have similar interests. Co-Operative Credit Society requires less paperwork than other forms of registration. Further, Co-Operative Credit Society also promote social and economic growth as well. Co-Operative Credit Society provides credit at fair rates to its members along with other financial services.

Members Co-Operative Credit Society enjoy a variety of benefits, including easy access to credit, low-interest rates, flexible repayment options, community involvement, savings and investment options, risk sharing, education and training loans, support to small businesses and government assistance.

What is the aim of Co-Operative Credit Societies?

  • The Co-Operative Credit Society attempt to provide its members with loans, goods at discounted prices, and so on at a reasonable cost.
  • Another vital role of a Co-Operative Credit Society is that such societies eliminate any intermediaries by directly supplying commodities. 
  • Co-Operative Credit Society typically reduces the extra profits the middleman makes in business and trade. 
  • They only accept deposits from their members. 
  • These Societies are explicitly established to aid the members financially. 
  • They provide low-interest loans to their members. 
  • These Societies are the one that is primarily responsible for protecting the interests of rural consumers and producers.

Categories of Co-Operative Credit Societies

In India, Co-Operative Credit Societies are organizations that give credit to marginalized groups, help small and medium-sized businesses, and promote rural development. In India, there are several sorts of Co-Operative Credit Societies, each with its own distinct purpose and function.

There are two types of Co-Operative Credit Societies:

  1. Agricultural Credit Societies
  2. Non-Agricultural Credit Societies

These Co-Operative Credit Societies are further divided into three tiers:-

  • Primary Co-Operative Credit Societies:

These types of societies are present in particular areas only. Here the group of people belongs to a specific location only. In these Societies, membership is generally open to all individuals.

  • Central Co-Operative Credit Societies:

In these Societies, the member is not open to all individuals, but it is only open to a few or limited people only. These types of Societies are usually formed at the district level only. The membership here is restricted to only primary societies, which are also known as banking unions.

  • State Co-Operative Credit Societies:

In State, Co-Operative Credit Societies are generally concerned with receiving deposits from a particular group of people only. It is formed in order to collect loans from wealthy metropolitan people. 

Benefits of Co-Operative Credit Societies

The following are the benefits of Co-Operative Credit Societies:

  • Anyone can join: 

Unless otherwise indicated, there is no membership barrier. Everyone is invited to join the Co-Operative Credit Society at no cost. There are no boundaries. At any time, anyone can join Society and become a member.

  • It is very simple to form:

The formation of a Co-Operative Credit Society is straightforward. It can be formed very quickly. A Co-Operative Credit Society can be formed by a group of ten people or more. The formation of the Co-Operative Credit Society is very convenient and straightforward. Formation of a Co-Operative Credit Society requires few legal formalities.

  • Governed by members only:

As these Societies are governed by the members themselves, all the decisions are always taken after keeping the betterment of the members in mind. 

  • LLP Registration:

The majority of the Co-Operative Credit Societies are created under LLP registration. The purpose behind this is to establish a simple framework for conducting business while limiting the owner’s liability.

  • Equality is present:

All the members are given the same rights. All the members can take part actively in creation as well as any modifications in the Society. All the members have the right to vote on some issues, and the decisions are taken democratically. 

  • Self-sufficient:

Co-Operative Credit Society members work together to accomplish their financial needs and goals. Co-Operative Credit Society foster self-help and self-reliance. The interests promoting self-sufficiency can be promoted by forming a Co-Operative Credit Society.

  • Easy to access credit:

Co-Operative Credit Society gives members easy access to credit, particularly those who may not have excess in standard banks.

  • Flexibility in Repayments:

Co-Operative Credit Society frequently provides flexible loan repayment alternatives, making it easier for members to repay their debts.

  • Low-interest rates: 

Unlike commercial banks, the Co-Operative Credit Society often provide lower interest rates on loans, making borrowing more affordable for members.

  • Community involvement:

Because these Societies are controlled by members of the community, lending and borrowing choices are decided locally, with the needs of the community in mind.

How to register for Co-Operative Credit Societies?

To register a Co-Operative Credit Society, all the below-mentioned documents should be provided:

  • NOC (No Objection Letter)
  • Financial statements for the past three financial years
  • List of members ( information about the member – like their date of birth and state they belong to)
  • Four copies of the Model by-law
  • A minimum of 50 members should be there in every state
  • Copies of PAN Card and Aadhaar card.
  • Certificate of the bank, which declares their credit balance and supports the Co-Operative Credit Society
  • The name of the Co-Operative Credit Society, which is suggested
  • Head office details and address
  • The name of the promoter member
  • The plan was explaining on how the Co-Operative Credit Society will be helpful. 
  • Pre-registration meeting details

Registration can be done online or offline. The applicant can fill the form in whichever way they want. The Co-Operative Credit Society can be formed under the multi-state Co-Operative Societies act 2002[1].

Co-Operative Credit Societies that are present in India

  • Sanjivani Credit Society
  • Arth Multi-state Credit Society
  • Peers Co-operative Society
  • Sahara Credit Society
  • Lokhit Bharti Credit Co-op. Society
  • Arogya Dhan Varsha Credit Society
  • Adarsh Credit Society
  • Navjivan co-op Society
  • Prithvi Credit Co-operative Society


The registration procedure for the Co-Operative Credit Society in India is quick. However, gathering and keeping all the necessary documents and paperwork may take time and effort. Co-Operative Credit Society have been a popular option for many people in India. They provide services to persons who may not qualify for regular banking owing to low income, and memberships are also often free. Furthermore, most Co-Operative Credit Society provide many extra incentives, which makes them more attractive. Incentives like educational loan reductions and other special offers are given to the member. With all these benefits, it’s no surprise that the Co-Operative Credit Societies are becoming increasingly popular throughout IndiaBecause of many of the advantages provided by Co-Operative Credit Society have a significant value.

Read Our Article: Cooperative Societies In India- Underlining The Potential Advantages

Request a Call Back

Are you human? : 8 + 5 =

Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality