A cooperative society can also augment its resources by obtaining loans and sub from the Government Department or any other Government sponsored agency, society may apply to the Government Department or the agency through the Registrar forwards the application after recording his opinion regarding the multi state society for said loan or subsidy and regarding the financial position society. He also states the desirability of sanctioning the loan or subsidy to the so penal rate of interest is charged in cases of default in repayment of the loans, Financing Banks are at freedom to recover loan from the society which has been the sum. It cannot be directed to launch recovery drive against defaulters of society assistance of society The cooperative societies are formed for the economic enlistment of their me and for this purpose they may grant loans to the members to enable them to strengthen commercial activity, A co-operative society cannot make loans to a non-member. It may give loans to another co-operative society after obtaining the sanction letter of Registrar. A person who has deposited his funds in the society may be granted such loan being secured by the deposit in multi state cooperative society. A cooperative society give loans against the security of movable or immovable property .A copy of the presentation made by Canada Bank is enclosed. For further details and related issues regarding procedure for implementation of the interest loan subsidy scheme and reimbursement of claims under the Scheme as well as monitoring of the Scheme, you are requested to kindly contact General Manager or General Manager in multi state cooperative society. A good piece of information can be fetched here on restriction on other transactions with non-members of multi state cooperative society.