CO-OPERATIVE CREDIT IN INDIA 35 



turns, however, are not yet available. Old debts had almost invariably- 

 been contracted at extortionate rates of interest - — 60 per cent, is refer- 

 red to in one report as a not unreasonable rate — and the saving to members 

 b}^ transferring their indebtedness to the societies is in the aggregate enor- 

 mous, as they paj' to the societies only from 12 to 15 per cent. 



Loans for the purchase of cattle are especially useful as they enable 

 the members to pay cash. Without the help of the society they would be 

 compelled to buy on credit and would be charged exorbitant rates of 

 interest. 



The following figures show the distribution of the loans made by the 

 Rural societies in Assam during the year 1911-12 and may be taken as fairly 

 representative of the work of the Rural societies as a whole. 



Purpose Amount Percentage 



Repayment of old debts 31,606 26 



Purchase of cattle 28,577 23 



Agriculture 25,816 21 



Trade and commerce 10,496 9 



Payment of rent and revenue . . . 10,133 8 



Marriage and other social expenses . 3,327 3 



Maintenance 2,270 2 



Other purposes 5.503 8 



Total . . . 117,728 100 



The bulk of the loans are granted in the first instance for periods not 

 exceeding one year, but as a rule extensions are allowed on condition 

 that the borrower repays from- one fifth to one -third of the principal every 

 year, together with the interest due. Failing this, the loan is treated as 

 overdue. It is evident from the Reports that the Registrars are not entirely 

 satisfied with the repayments and are anxious to secure greater punctuality 

 in this respect. It is impossible to give figures for the whole of India as the 

 practice of the societies with respect to the classification of loans as overdue 

 is not uniform. In the United Provinces, 9 per cent, of the loans outstand- 

 ing are classed as " in arrears " ; in Madras 11. 8 per cent, are so classified ; 

 while in the Punjab " overdue loans " amount to 15 per cent, of the whole 

 amount out on loan. 



With reference to overdiie loans the Registrar for the Punjab says: 

 " The amount, I admit, is large, but I think in agricultural societies 

 there is bound to be a large sum outstanding. The amount which a farmer 

 can repay depends on his harvest and on whether he has suffered loss of 

 cattle or some other calamity. Out of 80,000 members of societies scattered 

 over many hundreds of miles, there must be many, who for one good 

 cause or another are unable either to repay their loans or to repay them 

 in full. While, therefore, I should be glad to see the figure of overdue 

 loans reduced, I am not prepared to say that the amount is excessive ". 



