A multi state cooperative society other than a cooperative bank, make a loan to a member on the security of his share of a non-member. (2) Notwithstanding anything contained in sub section (I), a multi state society may make a loan to a depositor on the security of Provision mentioned under clause (a) of sub-section (1) the multi state cooperative society Act, 1984 has been re numbered as sub section (1) the 2002 Act. (2) Clause (b) of sub-section (1) of  the 1984 Act has been deleted, wherein provision for restriction on granting loan to a non-member was mentioned.(2) Proviso to sub-section (1)&nabs; the 1984 Act has been deleted, wherein provision in respect to loan to another cooperative society, under special circumstances, was mentioned. Credit cooperative society to grant a loan to a on the security of his share on the security of a non-member.

Multi state cooperative society may make a loan to a depositor on his deposit. multi state cooperative society exists for the members. A member as the Act means a person joining in the application for the registrar of cooperative society and a person admitted to membership registration in accordance with this Act, the rules and the bye-laws a nominal member and the Central Government when it subscribes capital of a society. Loan can be granted to the members of the society, the loan is allowed posit or who is not a member but the loan is restricted to the maximum posit on its security. Loans should not be given on the surety of none. A member who is entitled to receive loan from a society shall have to Ares in proportion to the amount of loan as may be specified in the bye laws of the society . A loan in excess of the maximum amount may be granted to r err with the previous sanction of the Central Registrar.