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CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

Core value:
Vishwas Credit Coop Society provides a culture and value-based
function that helps staff follow standards for appropriate
professional conduct.
It also provides leadership, management, and oversight for the
Society's ethics infrastructure.

Vishwas Credit Cooperative Society works in adherence with


the co-operative values laid out for its identity:

1.
1. Voluntary and Open Membership
2. Democratic Member Control
3. Member Economic Participation
4. Autonomy and Independence
5. Education, Training and Information
6. Co-operation among Co-operatives
7. Concern for Community

Vishwas Credit Co-Op Society adopts the following ways to


promote the cooperatives and ensure their sustainability:
Focusing on financial services only

Promoting savings services and diversify savings


products
Offering services that fit the clients needs and
diversify loan products
Reaching large number of clients with vision for growth
Simplify procedures to reduce operational costs
Motivating clients to repay loans and focuses on high
repayment
Building effective management information systems
(MIS)
Attaining financial sustainability by charging sufficient
interest rates and fees;
Integrating training and education
Developing institutional linkages
Mobilizing internal resources in the form of share
capital, long term savings and reserves.

Essentials of Membership:
A person willing to become a member in the society
must submit his recent 2photos and address proof with the
membership amount of 3330.
These documents are necessary for creating the membership in
the society. Then he must consult the directors of the society
for the confirmation of the membership.

After 6months of his membership the person will be eligible for


applying the loan from the society. He can make use of all the
financial services available in the society. He must follow the
rules and regulations of the society in case of applying loans
and repaying with interest within the time period conditions
mentioned by the society.
Documents must be furnished on the basis of financial service
that a person applies. All the loans and services will be
rendered only with the acceptance of the directors for each and
every member.
For large amount of loans and deposits the membership must
be more than 2or3 years. In case of any emergency for a new
member for large loans he must ensure a surety from a old
member. Then he will be able to apply for a large amount.

Types of services in vishwas credit co-operative society :

1.
2.
3.
4.
5.

Gold loan
Surety loan
House construction loan
Mortgage loan
Education loan

6. Mutual surety personal loan


7. Two-sureties with one government surety person loan
8. Deposits
Interest rate are charged in different rates for different services
according to the time stated by the directors of the society.
There will changes in interest rate year by year. It may be
increase or decrease according to turnover ratio of the society.

1. Gold loan:
Members of the society can pledge their gold for taking
loan from the society. Only members of the society are
eligible for taking loan, but not people who are not the
members of the society.
Per one gram the society lends 1000rs for a particular
person. The interest charged is 14% per annum.
And the time period given by the society is 18months
respectively. If he or she fails to repay the interest amount
of the particular month, the interest amount will be
deducted from their share amount on the notice of the
person and the directors.
2. Surety loan: The guarantee of the debts of one party by
another. A surety is the organization or person that
assumes the responsibility of paying the debt in case the

debtor policy defaults or is unable to make the payments.


The party that guarantees the debt is referred to as the
surety, or as the guarantor
3. House construction loan: A loan borrowed to finance the
construction of a home and typically only interest is paid
during the construction period. Once the construction is
over, the loan amount becomes due and it becomes a
normal mortgage. The money is advanced incrementally
during construction, as construction progresses
Financing to build a new home typically comes in the form
of a construction-to-permanent loan. This financing option
has two parts: a loan to cover the costs of construction,
and a mortgage on the finished home. The advantage of
such plans is that you have to apply only once and you will
have only one loan closing.
4. Mortgage loan: A debt instrument, secured by the
collateral of specified real estate property, that the
borrower is obliged to pay back with a predetermined set
of payments. Mortgages are used by individuals and
businesses to make large real estate purchases without
paying the entire value of the purchase up front. Over a

period of many years, the borrower repays the loan, plus


interest, until he/she eventually owns the property free
and clear. Mortgages are also known as "liens against
property" or "claims on property." If the borrower stops
paying the mortgage, the bank can foreclose.
5. Education loan: Money borrowed to finance education or
school related expenses. Payments are often deferred
while in school and for a six-month grace period after
graduation. Sallie Mae is the largest source of education
loans and handles the two major types, the Stafford loan
and the Perkins loan. One of the major benefits of these
types of loans is that they come with low interest rates
and do not require collateral or a credit check.
Sallie Mae acts as a secondary market for student loans.
The money from a Sallie Mae loan is not actually lent to
the student or their parents by the government. Once the
loan has been completed, the lender will then sell the loan
back to Sallie Mae in order to free up their funds to help
additional students.
6. Deposits: This type of deposit is identical to the money an
investor transfers into a bank's savings or checking
accounts.

Some contracts require a percentage of funds to be


transferred before delivery as an act of good faith.
An example is the initial margin deposit required for
entering into a new futures contract