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Usha Multipurpose Cooperative Society Ltd.

 

Credit Section

Usha micro credit programs enable sex workers to save in daily collection, monthly income or fixed deposit schemes. The interest rates offered to clients are higher or comparable to the market thus incentivizing savings. Flexible working hours as well as field based deposit and collection facilities make it convenient for sex workers to save part of their earnings. The accumulated capital is made available as loans to sex workers at low interest rates. Financially disadvantaged sex workers are prioritized for access to loans and are provided with easy and flexible loan repayment options that are sensitive to the sex workers’ social and financial circumstances. The Rules and Regulations for financial transactions undertaken are governed by the West Bengal Co-operative Societies Act, 1983.
Savings Schemes

  1. Savings Deposit - Interest Rate is 5% per annum
  2. Thrift Fund - Interest Rate is 7% per annum
  3. Recurring deposit -

Monthly Deposit

Year one

Year two

Year three

50

630

1292

1987

75

945

1938

2980

100

1260

1584

3978

150

1890

3876

5961

200

2520

5168

7948

300

3780

7752

11922

400

5040

10336

15896

500

6300

12920

19870

 

 

 

 

 

 

 

 

 

 

The rates of interest for recurring, savings and thrift fund are higher at USHA compared to those at other banks.

  1. In case a member withdraws money prematurely, she would receive interest on that particular period at 1% less than the official rate of that period
  2. In case a member fails to deposit money within the stipulated period, she would get the same interest as applicable if the money is kept for the whole period
  3. In case of monthly deposit if a member fails to do so, deposits of more than five years would be fined Rs. 1.50 for every Rs. 100 and for those less than five years will be fined Rs. 2.00 for every Rs. 100.
  4. In case a monthly deposit is not paid, fine will not be charged if the same amount is paid in advance

Monthly Income Scheme

  1. The minimum deposit is Rs. 5000. One can deposit in excess but it must be in multiples of Rs. 1000.
  2. The duration of deposit is five years and the interest rate is 8%
  3. In case of deposits of Rs. 1 lakh or more, the interest rate will be 9% and duration is five years
  4. The member will not be allowed to withdraw before the completion of three years
  5. In cases of emergency, if a member needs money, she can take an equivalent loan of 95% of the deposit
  6. In case a member withdraws money prematurely, the interest rate will decrease. This will depend upon the time of withdrawal or the maturity period. The interest rate will be reduced by 1% in the case of premature withdrawal and will remain 7% if the money is withdrawn after three years.

Fixed Deposit Scheme

Period

Interest rate

15 – 45 days

4%

45 – 90 days

4.5%

91 – 180 days

5%

181 – 364 days

5.5%

1 year – 3 years (1094 days)

7.5%

> 3 years

9%

8 year 5 months

Double

More than Rs. One lakh

9%

  1. In case of withdrawal before maturity period, the interest rate will decrease but the principal amount will remain the same.
  2. The interest rate will depend upon the time of withdrawal of the money. The interest rate will be 1% less than the stipulated rate in the case of premature withdrawals.
  3. In regards to deposits of one year or more, there will be no interest if withdrawn prior to completion of six months.

Daily Collection Scheme

Scheme

Main

Interest

Total

5

1825

75

1900

10

3650

150

3800

15

5475

225

5700

20

7300

300

7600

50

18250

750

19000

 

 

 

 


 

 

  1. This is the most popular scheme among the members. The interest rate for this scheme is more than that of other banks.
  2. Since this scheme is for one year, the member has to be very particular in depositing the amount.
  3. If money is prematurely withdrawn, most banks do not reward any interest. Moreover, an amount is deducted from the principal amount. On the other hand, Usha pays interest for that amount and does not deduct any money. But in case if it is withdrawal within three months, no interest is paid and Rs.10 is charged as service charge
  4. In case of money withdrawn between 3 to 6 months, the interest rate will be 2%; and for that between 6 and12 months, it is 5%.
  5. Members cannot stop depositing for more than 15 days at a stretch, in which case she only receives interest for the days she has saved money.
  6. In case a member pays money in advance and withdraws money prematurely, she receives interest for the period for which the system was functional.

Other Schemes

Education Loan:
This is a new scheme which allows members and mainly children of members to pursue education. Education loans will be granted for school education including Plus II, college, postgraduate, nursing, and vocational courses approved by the Central government and the West Bengal state government. Loans of up to Rs.3 lakhs will be provided at reasonable rates of interest. Repayment of loans will commence one year after the completion of a course of six months after securing a job, depending on whichever is earlier.
Money back Recurring Deposit
It is a long term Recurring Deposit scheme with intermediate withdrawal facility. Deposits are to be made every month and the maturity period is after 120 months. In the first option, the depositor will get one intermediate withdrawal at the end of 60 months and get the final payment at the end of 120 months. In the second option, there will be a provision for withdrawals at the end of 36 months and 72 months and members receive the final payment at the end of 120 months. Monthly deposits can be a minimum Rs.100/- with no upper band and in multiples of Rs.100/-. No premature withdrawal is allowed in the account and loans will be made available against the deposit.
Variable installment Recurring Deposit
It is a long term Recurring Deposit scheme (120 months) with variable monthly deposits. The interest on deposit is calculated on the minimum monthly balance between the 10th and last day of the month and is credited to the account every half year. The amount deposited will attract interest as applicable to Term Deposits. It is a very popular scheme among members who plan on investing in their children’s futures.
Other terms and conditions of Recurring Deposit will remain the same.
Flexible Fixed Deposit
In this scheme, deposits are accepted under the reinvestment plan; however, a part of the deposit can be prematurely encashed without affecting the remaining portion that continues to earn interest at the stipulated rate. Withdrawal is allowed in multiples of Rs 1,000/-. It is a matchless scheme that takes care of members’ emerging needs.