(1) A Co-operative Society shall not make a loan to any person other than a member.
(2) Atleast one third of total amount of loan to be sanctioned by a primary village service society or a farmer's service society in any year and not less than twenty five percent of the total amount of loan to be sanctioned by a Land Development Bank in a year, shall be sanctioned to those members who belong to weaker sections, provided that where in the opinion of the State Government such reservation is not workable, the State Government may fix different percentages of reservation of such loan for weaker sections in different areas.
(3) The Government may, by general or special order, prohibit or restrict the lending of money on the security of movable property or on mortgage of immovable property by any society or class of societies.
(4) Notwithstanding anything contained in sub-section (1), a cooperative society may make a loan to depositor on the security of his deposit.
(5) The lending policy of a financing bank shall be approved by the Government:
Provided that where guidelines are issued by the Reserve Bank of India in this regard for the Urban Co-operative Bank, such guidelines shall have effect.
[(6) Notwithstanding anything contained in this section, a short term co-operative credit structure society may determines its loan policies and decide individual loan to its members keeping in view the interests of the society and its members.]