Perception of borrowers towards lending and recovery pattern of co-operative housing societies with special reference to Madurai City

1. International Journal of Research in Management Studies (IJRMS), Vol. 2, No. 1, August 2013 38
ISSN 2321-1830 © 2013 Emerging Research Library
Abstract--- Home is an important facet of economic development; it is a basic need of a human being. Housing
forms an important part of the Government strategy for the alleviation of poverty and employment generation and it
is to be viewed as an integral part of human settlement and economic development. The public sector, the private
sector and the cooperative housing sector are all involved in the housing development for augmenting the
constructed houses in order to reduce the backlog of houses required in the country. But even poor and middle class
people cannot afford to invest large sums of money for construction or purchase of houses. Hence, the co-operative
housing societies are organized in order to remove these handicaps. The co-operative housing societies provide
their members with dwelling houses on rent or help them with loans for construction or purchase of houses. Hence
the researcher has made an attempt to study on “Perception of Borrowers towards Lending and Recovery Pattern of
Co-operative Housing Societies with Special Reference to Madurai City” The aim of the study is to analyse the
Perception of borrowers towards lending and recovery pattern of co-operative housing societies with special
reference to Madurai city. A total sample of 250 borrowers was selected at the rate of 50 sample borrowers from
each of the five sample blocks to ensure equal representation. The respondents were chosen using simple random
method. Both primary and secondary data are used for the study. The collected data were analysed by using
Percentage analysis, Compound annual growth rate, Trend analysis, Chi-Square test and Garret Ranking method.
The study concluded that in the global scenario cooperatives have to face challenges and they shall strive to
overcome them. Total Quality Management (TQM) in every wing of the cooperatives should be strengthened and
subjected to fine-tuning and orderliness. Economy in establishment expenditure has to be ensured all along. The
Internal checks, Controls and Management information system (MIS) are to be strengthened so that supervision
over the housing societies can be more effective. In order to face the emerging situations in the new millennium, co-
operatives including housing co-operatives will have to make all efforts to adopt themselves to the changing
environment and to prove to be effective instruments of socio–economic changed development.
Keywords--- Co-operative, Housing, Perception, Recovery
I. INTRODUCTION
ome is the most important human need, next only to food, clothing and shelter. Home is an important facet of
economic development; it is a basic need of a human being. It is a fundamental demand for living and one of
the keys to peace and happiness. The first and the best training ground for human beings‟ development of their
varied facilities are home. It constitutes a very significant part of the social and physical environment where the
individuals grow and mature as good citizens. It also plays an important role in creating employment, maintaining
health, social stability and preserving decent human life. Shelter and development are mutually supportive. Housing
forms an important part of the Government strategy for the alleviation of poverty and employment generation and it
is to be viewed as an integral part of human settlement and economic development.
Dr. M. Meenakshi Saratha, Associate Professor, Department of Management Studies, Dr.NGP Arts and Science
College, Coimbatore, Tamilnadu, India
Linda Mary Simon, Assistant Professor, Department of Commerce (Professional Accounting), Dr.NGP Arts and
Science College, Coimbatore, Tamilnadu, India.
Perception of Borrowers towards Lending and
Recovery Pattern of Co-operative Housing
Societies with Special Reference to
Madurai City
Dr.M. Meenakshi Saratha, and Linda Mary Simon
H

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The importance of housing has been universally recognized and the United Nations Organization (UNO)
proclaimed the year 1987 as the “International Year of Shelter for the Homeless” and declared the “Global Strategy
for Shelter (GSS)” to provide homes for all by the year 2000 A.D. The Government of India declared the year 1998
as “The year of Housing for All”, making housing a priority area. The Government decided to focus on the housing
needs of citizens in general and those of the poor and the deprived in particular, under the National Housing and
Habitat Policy. Before 2020 A.D., the Government of India expressed the hope that every houseless family in the
country would possess at least a thatched house for living.
For the millions of people in India, the desire of owning a house remains only a long cherished dream,
unfulfilled largely due to the poor socio-economic conditions prevalent among the masses. The country, as a whole,
is confronted with the housing problem of a very high magnitude. The public sector, the private sector and the
cooperative housing sector are all involved in the housing development for augmenting the constructed houses in
order to reduce the backlog of houses required in the country. The contribution of the public sector is very small.
The private sector caters merely to the needs of the higher and upper middle-income groups. But the poor and
middle class people cannot afford to invest large sums of money for construction or purchase of houses. Hence, the
co-operative housing societies are organized in order to remove these handicaps. The co-operative housing societies
provide their members with dwelling houses on rent or help them with loans for construction or purchase of houses.
Hence the researcher has made an attempt to study on “Perception of Borrowers towards Lending and Recovery
Pattern of Co-operative Housing Societies with Special Reference to Madurai City”
II. STATEMENT OF THE PROBLEM
In India, the housing problem is felt more acutely in recent years. The problem of insufficient sheltering is a
result of the staggering population explosion, migration and concentration in particular areas. Lower per capita
income, the phenomenon of nuclear family formation, scarcity of developed land, hike in the cost of building
materials, non-availability of skilled manpower and the highly speculative trend in real-estate business dealing in
house-sites contribute to the worsening of the situation. Finding the finances for solving these problems is crucial.
However, the constant patronage of the Government at the central and the state levels and the liberalised scenario in
the housing finance sector and the changes in the economic and social status of people have all caused a rapid and
consistent increase in the demand for housing, particularly from the middle class as well as the poor. Hence, they
join hands with housing cooperatives, a mighty–legal entity, to mobilise funds for construction or purchase of
houses.
It is observed, that the borrowers of housing cooperatives experience many difficulties in availing housing loans.
On the other hand, a remarkable size of beneficiaries fails to repay the loan. So, the society is very hard put to grant
fresh loans to its members. A systematic enquiry is to be made to understand the multi-dimensional problems faced
by the beneficiaries in making use of housing loans. Again the societies‟ problems in recovery of loans have to be
addressed. Keeping these in mind, an attempt is made to study borrower‟s attitude towards lending and recovery
pattern of co-operative housing societies and to offer suitable suggestions to strengthen the operational efficiency of
the societies.
III. LITERATURE REVIEW
M.L.Khurana (2001), in his article, “Workshop on Media and Co-operatives” suggested that co-operatives
should explore new areas, take up new economic activities and adopt new technologies. To popularize their
activities and project their programmes, cooperatives should make use of the popular media like TV and Radio. S.K.
Sharma (2002), in his article, “Cost Effective Housing in Rural Areas”, concluded that two major initiatives were
needed to effectively deal with rural housing. The first was ongoing research and development of cost effective
building material and building systems using locally available materials and development of entrepreneurship in
rural areas in their production and application. The second was strengthening the rural economy to make villages
self-reliant. M.L.Khurana (2003), in his article, “Inter-Institutional Cooperation for Housing”, says that there was

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need for a great degree of Inter-institutional partnership to ensure that the housing inputs and housing delivery
mechanisms truly converged both in time and space. The author concluded that if Institutions - Development
authorities, Local bodies, Housing cooperatives, Builders and the like joined hands there would be a better housing
output and faster improvement in the socio-economic environment. M.L. Khurana (2004), in his article,
“Cooperatives for Improving Living Conditions for Slums” described poor living conditions in slums in India and
wished cooperatives would improve their conditions through special schemes initiated by the Central and State
Governments. J. Subramani(2005) stated in his article, “Human Value Promotion through Co-operatives”, that
instilling in the minds of members virtues like moral solidarity, unity, integrity, co-existence amidst possible
differences, homogeneity of interest and equality, would produce fine human beings worthy enough for overcoming
all the socio–economic and cultural evils facing society.
In an article published in the Tamil daily newspaper “Dinamani” bearing the title “Policy on Rural Dwellings”,
K. Loganathan examined the lack of development in the agricultural sector and the consequent decrease in the
scope of employment in the villages as being responsible for the migration of rural labour to the urban areas in India.
In his opinion, housing policy that merely addressed the problem of housing would not cause any significant
improvement in rural housing. The planners should plan agricultural development first and solve rural poverty.
IV. SCOPE OF THE STUDY
This study is mainly confined to the role played by Co-operative housing societies financing the home loans to
various income groups in Madurai City. The Recovery of loans and over-dues from borrowers as well as the
repayment performance of the societies has also been analysed. This study also examines the opinions of the
borrowers to reveal a broad spectrum of problems of demand and supply.
A. Objectives of the Study
The present study has the following as its specific objectives:
1. To study the socio-economic conditions of borrowers of Co-operative Housing Societies in the study area.
2. To examine the perception of the borrowers on loan proceedings and functioning of the Co-operative
Housing Societies in the study area, and
3. To examine attitude of the borrowers about Lending and repayment procedure of CHS in the study area.
4. To make suitable recommendations for the smooth and efficient functioning of housing cooperatives in the
district.
V. METHODOLOGY
The aim of the study is to analyse the Perception of borrowers towards lending and recovery pattern of co-
operative housing societies with special reference to Madurai city. There are 14 blocks in the Madurai district.
Among them five blocks were selected by using random sampling technique. A total sample of 250 borrowers was
selected at the rate of 50 sample borrowers from each of the five sample blocks to ensure equal representation. The
respondents were chosen using simple random method. Both primary and secondary data are used for the study. The
collected data were analysed by using Percentage analysis, Compound annual growth rate, Trend analysis, Chi-
Square test and Garret Ranking method
A. Analysis and Intrepretation:
Objective 1: Socio-Economic Conditions of Borrowers
Analysis of age-wise classification of the respondents is given in Table 6.1.

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Table 1: Age Group of Respondents
Sl. No. Age group (In years) No. of respondents %
1 Below 30 17 6.80
2 30 -50 161 64.40
3 50 and above 72 28.80
Total 250 100
Source: Primary data.
From Table 1 it is evident that 161 (64.40%) respondent borrowers are in the age group 30 – 50. It indicates
nearly two–thirds of the borrowers of co-operative housing societies in Madurai city belong to the middle age group.
Table 2: Educational Qualification of the Respondents
Sl.
No.
Education Level No. of respondents Percentage
1 Uneducated 32 12.80
2 Up to School Level 153 61.20
3 Degree/ Diploma and above 65 26.00
Total 250 100
Source: Primary data.
It is seen from Table 2 that respondents who are uneducated and those who have studied upto School level
(H.SC.) form 12.80 per cent and 61.20 per cent respectively. It is clear from the analysis that three–fifths of the
respondents have studied only up to the school level.
Table 3: Occupations of the Respondents
Sl. No. Occupation No. of respondents Percentage
1 Agriculturist 98 39.20
2 Employee 70 28.00
3 Businessman and Others 82 32.80
Total 250 100
Source: Primary data
It is seen from Table 3 that nearly two–fifths of the respondents had was agriculture, as their occupation.
Table 4: Monthly Incomes of the Respondents
Sl.
No.
Level of monthly income No. of
respondents
Percentage to
total
1 Below Rs.5000 173 69.20
2 Rs.5000 – Rs.10,000 39 15.60
3 Rs.10,000 and above 38 15.20
Total 250 100.00
Source: Primary data.
It is inferred from Table 4 that two-thirds of the respondents had income below Rs.5,000/- per month.
Table 5: Number of Members in the Respondent‟s Family
Sl. No. Number of Members No. of Family Percentage
1 Up to 2 members 34 13.60
2 3-4 members 112 44.80
3 More than 4 members 104 41.60
Total 250 100
Source: Primary data
From Table 5 It confirms that nearly three–fifths of the sample borrowers of the society followed the ideal
family size.

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Table 6: Monthly Savings of the Respondent‟s Family
Sl. No. Level of monthly savings No. of respondents Percentage
1 Less than Rs.1000 146 58.40
2 Rs.1000 – Rs.2,500 82 32.80
3 More than Rs.2,500 22 8.80
Total 250 100.00
Source: Primary Data.
In a sense, nearly three-fifths of the respondents‟ families had a monthly savings of less than Rs.1,000 and
thus they belong to EWS and LIG categories.
B. Awareness of Housing Loan Schemes
Table 7: Sources of Information on Co-operative Housing Loan
Sl.
No.
Sources of Knowledge No. of
Respondents
Percentage
1 Beneficiaries 137 54.80
2 Officials of Co-operative housing
society
64 25.60
3 Advertisement 33 13.20
4 Others 16 6.40
Total 250 100
Source: Primary data.
From Table 7 it is seen two–fourths of the respondents became aware of the information on the co-
operative housing loan through beneficiaries of societies in the study area.
5.1 Reasons for Preferring Co-Operative Housing Society
The financial institutions like HDFC, LICHFL, Banks and Co-operative Housing society offer different types of
housing loan schemes from time to time. The researcher collected data from respondents about the specific reasons
for preferring Co-operative housing societies for the housing loan. Based on the data collected, the researcher
identified six reasons, for obtaining housing loan from Co-operative Housing Society namely, Easy to approach,
Higher loan amount, Easy availability, Easy instalments, No security except land, and Subsidy. The respondents
were asked to mention the rank for prime reason for their preference of Co-operative housing society. For this
purpose Garrett‟s ranking method was used.
Table 8: Reasons for Preferring Co-operative Housing Societies
Sl.
No.
Reason Rank Total
No.of
Respon-
dents
Total Score Mean
Score
Rank
1 2 3 4 5 6
1. Easy Approach 58 53 48 48 34 9 250 14,070 56.28 II
2. Higher loan Amount 14 28 34 38 47 89 250 10,212 40.85 VI
3 Easy availability 60 58 64 32 34 2 250 14,506 58.02 I
4 Easy instalment 52 32 36 60 48 22 250 13,006 52.02 III
5 No security except
land 34 48 22 20 54 72 250
11,404 45.62 V
6 Subsidy 32 31 46 52 33 56 250 11,802 47.21 IV
Source: Primary Data
According to the Garrett Ranking, Table 8 shows that “Easy availability” is ranked first by the respondents.
“Easy Approach” is ranked second and “Easy Instalment” takes the third rank in the preference for the selection of
CHS. The “Subsidy”, “No Security except Land” also takes fourth and fifth positions in selecting the CHS. The
“Higher Loan Amount” is the last rank cited by the respondents to prefer Co-operative Housing Society.
Objective 2: Perception of Borrowers towards Functioning Of Co-Operative Housing Societies

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5.2 Approach to Co-Operative Housing Societies
Keeping in view the fact most of the institutions in the country are criticized as person- oriented, the respondents
were asked how to approach Co-operative housing society.
Table 9: Approach to Co-operative Housing societies
Sl. No Types of approach No. of respondents Percentage
1 Personally 123 49.20
2 Through the employees of Society 80 32.00
3 Through the past clients 44 17.60
4 Through outside Agency 3 1.20
Total 250 100
Source: Primary data.
It is evident from Table 9 that two–fourths of the respondents personally approached the housing co-operatives
for availing housing loan.
5.3 Opinion on Procedure for Admission as Member
Table 10: Opinion on Procedure for Admission as Member
Sl. No. Opinion No. of respondents Percentage
1 Very Good 112 44.80
2 Good 87 34.80
3 No Opinion 51 20.40
4 Poor - -
5 Very poor - -
Total 250 100
Source: Primary data.
It is observed from Table 10 that 112 (44.80%) of the borrowers felt the procedure for admission as a member in
society was „very good‟, 87 (34.80%) of the borrowers felt it a „Good‟ and the remaining 51 (20.40%) of the
respondents had no opinion. No respondent called the procedure as poor or very poor.
5.4 Time for Receiving Membership Number
Table 11: Time Lag between Submission and Allotment of Membership Number
Sl. No. Time lag in Days No. of respondents Percentagel
1 Immediately 48 19.20
2 Upto 15 days 75 30.00
3 15 to 30 days 116 46.40
4 More than 30 days 11 4.40
Total 250 100
Source: Primary data.
It is seen from Table 11 that two-fourths of the borrowers could get their membership number within a
period of 15 days from the submission of application, and the remaining two–fourths of the borrowers had to wait
for a period of more than 15 days.
Objective 3: Attitude of the Borrowers about Lending and Repayment Procedure of CHS
5.5 Opinion on Procedures Relating to Applying for the Housing Loan
Table 12: Respondents‟ Opinion on Procedure for Applying Housing Loan
Sl. No. Opinion No. of respondents Percentage to total
1 Procedure Satisfactory 168 67.20
2 Procedure not Satisfactory 82 32.80
Total 250 100
Source: Primary data

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Table 12 shows that sample respondents numbering 168 (67.20%) stated that the procedure for applying housing
loan was satisfactory and the remaining 82 (32.80%) were not satisfied with the procedure for housing loan
prescribed by the society. The dissatisfied members stated that lengthy formalities and too many documents to be
attached to the loan application form were a time-consuming process and it was very difficult to fill the application
form.
5.6 Delay for the Submission of Loan Application Form
Table 13: Opinion on Delay in the Submission of Loan Application Form
Sl. No. Opinion No. of respondents Percentage
1 Delayed 145 58
2 Not Delayed 105 42
Total 250 100
Source: Primary data.
It is clear from Table 13 that out of 250 respondents, 145 (58%) respondents felt that there was some delay in
submitting the loan application form and the remaining 105 (42%) of the respondents did not feel any delay in the
submission of loan application form.
5.7 Reasons for Delay in Submission of Filled-In Loan Application Form
Table 14: Reasons for Delay in the Submission of Filled-in Loan Application Form
Sl. No. Reason No. of Responses Percentage
1 High Registration Fee 28 34.15
2 Innumerable Details 32 39.02
3 Many documents to be attached 46 56.10
Total 106 100.00
Source: Primary data.
Table 14 It is found that most of the borrowers find it difficult to pay the registration fee and procure the
certificates required to be attached. Therefore, TNCHF/society should change its applying procedure to remove the
inconvenience faced by the poor. It can reduce the registration fee atleast in the case of EWS and LIG.
5.8 Purpose of Housing Loan
Table 15:Purpose of Housing Loan
Sl. No. Purpose of loan No. of respondents Percentage
1 Construction of New House 181 72.40
2 Purchase of New House/Flat 40 16.00
3 Extension of House 18 7.20
4 Clearing Prior Debts 11 4.40
Total 250 100
Source: Primary data.
Table 15 shows nearly three-fourths of the respondents applied for housing loan for the construction of new
houses.
5.9 Estimated Cost of Construction of House
Table 16: Estimated Cost of Construction of House
Sl. No. Estimated Cost of Construction No. of Respondents Percentage l
1 Less than Rs.1 Lakh 147 58.80
2 Rs.1-3 lakhs 54 21.60
3 Rs.3-5 lakhs 34 13.60
4 More than Rs.5 Lakhs 15 6.00
Total 250 100

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Source: Primary Data.
Table 16 shows that in the case of 147 (58.80%) respondents, the estimated cost of house was less than
Rs.1 Lakh and 54 (21.60%) respondents the housing cost ranged from Rs.1 to Rs.3 lakhs.
5.10 Percentage of Loan Sanctioned
Table 17: Percentage of Loan Sanctioned
Sl. No. Percentage of Loan No. of Respondents Percentage to Total
1 Above 90% 33 78.57
2 80-90% 9 21.43
3 70-80% - -
4 Less than 70% - -
Total 42 100.00
Source: Primary data.
Table 17 reveals that 78.57 per cent of the respondents got above 90 per cent of the estimated housing loan and
the remaining 21.43 per cent of the respondents got loan sanctioned between 80 per cent and 90 per cent of the loan
applied for.
5.11 Time Lag between Submission of Loan Application and Sanction of Loan
Table 18: Time Consumed for Sanction of Loan
Sl. No. Time Taken in Months No. of Respondents Percentage to Total
1 Within a month 67 26.80
2 1-2 months 46 18.40
3 2-3 months 62 24.80
4 More than 3 months 75 30.00
Total 250 100.00
Source: Primary data.
It is noted from Table 18 that 67 (26.80%) respondents received the sanction letter within a month.
5.12Awareness for the Disbursement of the Sanctioned Loan
Table 19: Awareness of Respondents of Mode of Disbursement of Sanctioned Housing Loan
Sl. No. Opinion No. of Respondents Percentage
1 Aware 236 94.40
2 Not aware 14 5.60
Total 250 100.00
Source: Primary data.
Table 19 reveals that 94.40 per cent of the respondents were aware of the formalities and the remaining 5.60 per
cent respondents were unaware of the formalities to be fulfilled for the disbursement of the sanctioned loan by Co-
operative Housing Society.
5.13Respondents’ Opinion on Inspection Methods of Disbursement of Instalment Amount
Table 20: Opinion on Inspection Method
Sl. No. Opinion No. of Respondents Percentage
1 Rigid 104 44.07
2 Moderately rigid 80 33.90
3 Flexible 16 6.78
4 No opinion 36 15.25
Total 236 100
Source: Primary data.

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It is seen from Table 20 that more than two–fifths of the respondents reported rigidity, the Society should satisfy
its borrowers by planning its inspection method to be flexible and humane.
5.14Average Time Lag between Inspection and Disbursement of Sanctioned Loan
Table 21: Average Time Lag between Inspection and Disbursement of Sanctioned Loan
Sl. No. Time lag in days No. of Respondents Percentage
1 Within 15 days 36 14.40
2 15 – 30 days 59 23.60
3 30-60 days 83 33.20
4 More than 60 days 72 28.80
Total 250 100
Source: Primary data.
It is clear from Table 21 that 14.40 per cent of the respondents received all the three instalments within 15 days
on average and 23.60 per cent of the respondents received them from 15 to 30 days after the inspection.
5.15Number of Respondents Who Availed Subsidy
Table 22: Number of Respondents Receiving Subsidy from Co-operative Housing Societies
Sl. No. Subsidy No. of respondents Percentage to total
1 Subsidy Received 62 24.80
2 Subsidy Not Received 188 75.20
Total 250 100
Source: Primary data.
Table 22 shows 75.20 per cent of the respondents did not get any subsidy from the Government and the
remaining 62 respondents got subsidy for the construction of house from the Government through the Co-operative
Housing Societies. The Loan recovery procedure of Co-operative Housing Societies
5.16Terms of Repayment of Loan
Table 23: Period of Repayment of Loan
Sl. No. Repayment Period No. of Respondents Percentage to Total
1 Less than seven years 16 6.40
2 7 to 10 years 73 29.20
3 10 to 15 years 114 45.60
4 15 to 18 years 47 18.80
Total 250 100
Source: Primary data.
From Table 23 it is seen that 6.40 per cent of respondent borrowers availed the shortest repayment period
of less than seven years, 29.40 per cent of the respondents were given 7 to 10 years.
5.17Sufficiency of Repayment Period – Respondents’ Perception
Table 24: Respondents‟ Opinion on the Credit Period Allowed by the Society
Sl. No. Opinion No. of Respondents Percentage to Total
1 Quite Long 26 10.40
2 Reasonable 139 55.60
3 Insufficient 85 34.00
Total 250 100
Source: Primary data.
It is seen from Table 24 that one–third of the borrowers felt that the repayment period was insufficient;
TNCHF should take steps to lengthen the period so as to lessen the burden of the borrowers in repaying the monthly
instalments promptly.
5.18Repayment Behaviour of Borrowers

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Table 25: Nature of Payments of Instalment
Sl. No. Nature of Repayment No. of Respondents Percentage to Total
1 Regular 147 58.80
2 Not Regular 103 41.20
Total 250 100
Source: Primary data.
It is seen from Table 25 that 58.80 per cent of the borrowers of CHS made regular payments of their
monthly instalments and the remaining 41.20 per cent were irregular.
5.19Reasons for Default
Table 26: Reasons for Default in Payment of Instalment Amounts
Sl. No. Reason No. of Respondents Percentage to Total
1 Medical expenses - -
2 Reduced income 57 68.67
3 Family constraints 26 31.33
4 Other ( Specify) - -
Total 83 100
Source: Primary data.
From Table 26 it is seen that there are two reasons disclosed by the borrowers for their irregular payments.
Two–thirds of the respondents failed to pay EMI as they were not earning fixed income. Thus, there is a distinct
relationship between income level and the regularity of repayment.
5.20Respondents Awareness of the Action Taken Against Defaulters By The Society
Table 27: Respondents Awareness of Action Taken Against Defaulters by the Society
Sl. No. Opinion No. of Respondents Percentage to Total
1 Action taken procedures known 227 90.80
2 Action taken procedures not known 23 9.20
Total 250 100
Source: Primary data.
Table 27 shows that 90.80 per cent of the beneficiaries knew well the nature of action taken on default and the
remaining 9.20 per cent of the beneficiaries did not know about the nature of action taken on default in the
repayment of instalment amount.
5.21Respondents’ Opinion on the Action Taken by the Society on Default
Table 28: Opinion of the Borrowers on the Quantum of Penalty
Sl. No. Opinion No. of Respondents Percentage to Total
1 High 141 62.11
2 Normal 81 35.68
3 Low 5 2.20
Total 227 100
Source: Primary data.
Table 28 shows that 62.11 per cent of the respondents felt that the penal rate of interest was quite high,
followed by 35.68 per cent of respondents who seemed to be quite content with the existing rate and the remaining
2.20 per cent of the respondents only thought the penal rate was very low. The majority of respondents felt the
society should be less harsh in levying the penal rate of interest.
VI. FINDINGS
Based on the research , the findings of the study shows that a majority of the members were in the age group of
30 -50, that a majority of them had formal education; but only a few had higher education, that they were
Agriculturist, Businessmen and Salaried employees. A majority of the respondents earned a monthly income of less
than Rs.5, 000 and their Family size was 3 - 4 members. The monthly savings of the family was less than Rs.1,000.
Majority of the respondents‟ were aware of housing loan schemes offered by various financial institutions and banks

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including CHS. Majority of the respondents became aware of the information on the co-operative housing loan by
through beneficiaries of societies in the study area. They preferred CHS for easy availability of loan and easy
approach. They felt the procedure for admission as member was good, they got membership number within 30 days,
and were satisfied with the procedures of applying for the housing loan. Delayed submission of applications for
housing loans was due to many documents to be attached. Majority of them availed loan for construction of new
houses, and their estimated cost of construction was less than Rs.1,00,000. They received the letter sanctioning the
loan after one month. The average time lag between inspection and disbursement of the installments payment was
more than one month due to lack of funds. A majority of three–fourths of the respondents didn‟t avail subsidy.
VII. RECOMMENDATIONS
In the global scenario cooperatives have to face challenges and they shall strive to overcome them. Total Quality
Management (TQM) in every wing of the cooperatives should be strengthened and subjected to fine-tuning and
orderliness. Economy in establishment expenditure has to be ensured all along. The Internal checks, Controls and
Management information system (MIS) are to be strengthened so that supervision over the housing societies can be
more effective. In order to face the emerging situations in the new millennium, co-operatives including housing co-
operatives will have to make all efforts to adopt themselves to the changing environment and to prove to be effective
instruments of socio–economic changed development. The „Group Insurance Scheme‟ may be extended to the
borrowers suffering from total disability. At present the scheme covers only the death of the borrower. Such step
will give great relief to the affected beneficiaries and their family members. The repayment of installment amount
may be on monthly/quarterly/half-yearly basis. This choice will enable occasional earners (Marginal farmers and
Agricultural labourers and village artisans) to pay installments promptly. The success of co-operative movement
mainly depends on the members. So societies may organize non-formal education programmes to educate the
members in the value and utility of co-operatives and in decent living with proper housing.
REFERENCES
[1] M.L.Khurana, “Workshop on Media and Co-operatives”, NCHF Bulletin, New Delhi, April, 2001, pp.13-
14.
[2] S.K. Sharma, “Cost Effective Housing in Rural Areas”, Yojana, New Delhi, January, 2002, pp.35-
37.
[3] M.L.Khurana, “Inter-Institutional Cooperation for Housing”, Tamilnadu Journal of Co-operation,
Chennai, March, 2003, pp.27-29.
[4] G. Murugan, “The Performance Evaluation of Maharaja Nagar Co-operative Housing Society Ltd., 0.2158,
M.Phil. Dissertation, Manonmaniam Sundaranar University, Tirunelveli, 2003.
[5] Aravazhi, “Recovery Ethics in Co-operative Bank”, Tamilnadu Journal of Co-operation, Chennai, March
2003, p.30.
[6] M.L. Khurana, “Cooperatives for Improving Living Conditions for Slums”, Co-operative Housing
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