Frequently Asked Questions

How do we select the brand and sizes for purchasing desired TMT Bars ?

Nirmal Ujjwal Credit Co-Operative Society is a Multi State credit Co-Operative Society registered under Multi State Credit Co-Operative Societies Act 2002, and doing Financial Business amongst the members of the society.

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, Housing loan and loans for purchase of Vehicles except Truck finance and Project loans etc.

Are the deposits with the society safe & secured?

Yes, because Nirmal Ujjwal 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 Nirmal Ujjwal Credit Co-Operative Society is following this diktat of government of India in latter and spirit.

What is the difference between Nirmal Ujjwal Credit Co-Operative Society and Financial Companies?

As stated else where the ACCS is registered under 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. Nirmal Ujjwal Credit Co-Operative Society Ltd.(Multistate). 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 Nirmal Ujjwal Credit Co-Operative Society are subject matter of Statutory Audit and the Audited Accounts are submitted to Government of India for review and their personal. 
When you invest your money in Nirmal Ujjwal Credit Co-Operative Society you are not only an investor but you are a member of the society. You are an honored share holder and a member of Nirmal Ujjwal Pariwar

How the Nirmal Ujjwal 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?

There are various natural and financial reasons which help the society in offering better Rate of Interest. A few of them are mentioned below:-


  • Income earned by the society on account of Interest on loans/ advances granted to members which contributes a major part of society's Income is exempt from Income Tax as per section 80P of Income Tax Act. Therefore the society is able to save huge amount which could have otherwise been paid as Tax. The Board of Directors of the society always felt that some portion of this should be passed on to the members by offering higher Rate of Interest and this is what our corporate philosophy is.
  • Cash Reserve Ratio (CRR):-  Banks and other financial institutions have to keep about 4 to 5 percent of their deposits in cash with Reserve Bank of India as per R.B.I. regulations. Amount so kept does not earn any interest and reduces the banks' capacity of lending. While Nirmal Ujjwal Credit Co-Operative Society is exempted from such CRR provision , we keep minimum cash in hand to meet the day to day requirements and therefore are in a position to lend more.
  • Statutory Liquidity Ratio (SLR):- Banks have to keep almost 25 to 30% of their deposits in different type of securities which attracts less interest as compared to the Rate of Interest prevailing in the market on fixed deposits.
  • Nirmal Ujjwal Credit Co-Operative Society is exempt from maintaining Cash Reserve Ratio (C.R.R.) & Statutory Liquidity Ratio. (SLR) and hence Nirmal Ujjwal Credit Co-Operative Society has better opportunities of managing its funds and earning more interest thereon which has been done sincerely and the  benefits of such income  earned has been passed on to its members/ Investors by offering better rate of Interest.
  • Society is extending short term & medium term loans to its members. Our loans are fully secured and our recovery is Excellent i.e. 97 to 99%. Our NPA percentage is negligible.  On the other hand Banks' resources are adversely affected by large amount of Non Performing Assets and as a result their profitability is eroded and hence due blockage of funds it is not available for fresh lending which affect the profitability adversely and unable to generate good income in the form interest earning and hence they are unable to provide the higher rate on interest on deposits to their customers/investors.
  • As it is evident that the, banks spends huge amounts for misc. expense and their establishment . As compared to cooperative banks and NBFCs' their form operational cost is very high and hence  they are not in a position to pass the higher  benefit to their customers.
  • All those investors/Depositors who are into to get better returns/interest on their deposits; for the period which is best suited for them for earning highest returns on their investments. We therefore welcome to all of u for such valuable investments with Nirmal Ujjwal credit Cooperative society (Multistate) 

Who should invest with Nirmal Ujjwal Credit Co-Operative Society Ltd.?

All those investors/depositors who are keen to get better returns/interest on their deposits in short term, medium term and long term. So all of you are welcome.