FAQs

1. What is Ujala Credit Co-Operative Society Limited?
Ujala Credit Co-Operative Society is a Multi State Co-Operative Society registered under Multi State Co-Operative Societies Act 2002, Vide Registration no. MSCS/CR/552/2012.
The Ujala Credit Co-Operative Society strictly abides by the Multi State Co-Operative Societies Act.,2002  awakening the financial independence among its members.

2. How does the Society utilize the funds/deposits procured by it?
The Society uses the funds in lending to the members and investments as per the Co-operatives society Act/Rules/By-Laws. Our lending is in the shape of small loans for business & Micro Finance. 

3. Are the deposits with the society safe & secured?
Yes, because Government of India has framed the laws/rules to ensure the security and safety of deposits and Ujala Credit Co-Operative Society strictly abides by the rules and regulations framed by Central Government. The Multi- State Co-Operative Societies Act, 2002, provides as under
Rule 66 - Restriction on loans – (1) A multi- State co- operative society, other than a co- operative bank, shall not make a loan to a member on the security of his share or on the security of a non-member.
Rule 67 - Restriction on borrowing - (1) A multi- State co-operative society may receive deposits, raise loans and receive grants from external sources to such extent and under such conditions as may be specified in the bye-laws.
Provided that the total amount of deposits and loans received during any financial year shall not exceed ten times of the sum of subscribed share capital and accumulated Reserves.
Provided further that while calculating the total sum of subscribed share capital and accumulated Reserves, the accumulated losses shall be deducted. We are happy that Ujala Credit Co-Operative Society is following the rules of government of India.

4. What is the difference between Ujala Credit Co-Operative Society and Finance Companies? 
Ujala Credit cooperative Society Limited is registered under the Multi state Co-Operative societies act and rules. Society is not a personal institution owned by an individual but is a fully democratic organization managed by Board of Directors who are elected by the members of the society in the Annual General Meetings and the Board Of Directors also take decisions in a collective manner with total transparency. The Department of Co-Operatives constantly reviews the functioning of the society at regular intervals.

Finance companies are usually owned by individuals and frame the so called policies according to the whims and fancies of the owners. The general members/ depositors/ Investors have no role to play. There are some possibilities of the absence of transparency. Members/ Investors have virtually no knowledge of the affairs/ legal provisions of N.B.F.Cs and the statutory liabilities of the N.B.F.C s are also limited.
Ujala Credit Co-Operative Society Ltd. is completely alive to its legal liabilities and answerable to its members through its elected members of the Board Of Directors. Books of accounts of Ujala Credit Co-Operative Society are subject matter of Statutory Audit and the Audited Accounts are submitted to government of India for review and further action, annually.
When you invest your money in Ujala Credit Co-Operative Society you are not only an investor you are a member of the society. You are an honored share holder and a member of Ujala Credit Cooperative Society Limited

5. Why Ujala Credit Co-Operative Society Ltd. is paying 'Higher Rate of Interest' to its members/Investors?
We believe in the principle of encouraging saving habits amongst our members. In the present context when tendency to save is on the decline and the consumerism is on the high. We want to ensure the financial and social well being of our members as a moral responsibility towards the Society.

6. How Ujala Credit Co-Operative Society Ltd. is able to offer Higher Rate of Interest as compared to the Rate of Interest of Commercial banks/ Financial Institutions?
The main aim of UCCS is to promote the concept of Saving. Some of the main instances why we can provide a higher interest rate than banks are highlighted below:

1. The society invests in short term micro loans for which the risk of bad debts and repayment installments are small, thus keeping the funding cycle continuous and in rotation.
2. Under the Income Tax Rule, income generated from interest on loan amount is exempted. This amount saved is thus provided for distributing loans.
3. The society has no liability to maintain a minimum cash reserve ratio (C.R.R) as compared with banks that need to maintain 6% CRR on deposits, earning no interest. The amount thus saved is utilized for providing more loans and generating more income.
4.  The society invests a higher amount of interest which is made available for loan disbursement, thus benefitting the society in terms of a higher payback.

7. Who should invest with Ujala Credit Co-Operative Society Limited?

Anyone who is interested in gaining high returns on short, medium and long term investments can invest in our schemes

8. What is minimum and maximum amount one can invest in Ujala Credit Cooperative Society Limited?
Minimum amount is defined and varies between schemes, whereas there is no maximum limit.

9. Who can become part of Ujala Credit Cooperative Society?
An individual who is:
- 18 years of age
- Capable of entering a valid contract
- Member of a Hindu undivided family
- Company registered under companies act

Documents Required

Application form with

• Photograph (Proprietor, Partner, Director's photo)
• Photo copy of Pan Card
• Photo copy of Trade License ( Shop Act License)
• Constitutional document ( Partnership deed , MA/AA, Trust deed)
• In case of companies copy of Resolution
• Copy of Identity proof ( Voter’s ID , Driving license )
• Address Proof ( Ration card, Voter’s ID, Electricity/Telephone bill