Al Khair Co-operative Credit Society is a micro-credit initiative which has 374 members in Lucknow and has provided 428 loans amounting to Rs 57 lakhs disbursed in the last 2 years. Rs 49 lakhs have already been recovered with an outstanding amount of Rs 8 lakhs. The repayment rate has been excellent and the society expects to break-even in a year from now.

The society’s beneficiaries mostly include daily wage who are also shareholders in the society.  The share capital is considered as deposit at the society which is refunded after 3 years. Any profit earned in a year is shared with the members in the form of dividends.

Members can receive loans after 3 months of membership of up to a maximum amount of Rs 30,000 or ten times of their deposit [whichever is higher]. They are required to repay everyday as a part of a daily deposit scheme. The entire loan amount and a nominal service charge must be repaid within 6 months. The service charge is a fixed amount independent of time and is levied to meet administrative costs like accounting, collection etc.

Al-Khair is a co-operative credit society registered in 2002 under the Multistate Co-operative Society act. It operates across Bihar and UP in 8 branches – 3 in Patna and one each in Gaya, Ara, Motihari , Sasaram and Lucknow. Al-Khair Lucknow started its operation in December 2010.

A co-operative credit society is a member-owned financial cooperative, democratically controlled by its members, and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members.

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