Karnataka Cooperative Proposes Interest-Free Loans for the Poor
The Khaja Bandanawaz Minority Souharda Cooperative Ltd. is exploring the possibility of accepting interest-free fixed deposits and extending interest-free loans to economically weaker sections, according to its president, Syed Mohammed Ali Al-Hussaini.
Speaking at the cooperative's annual general body meeting for 2025-26, held recently at the KBN auditorium in Kalaburagi, Mr. Al-Hussaini said the cooperative is functioning well with the support of its customers and remains committed to serving the community.
"The main foundation of a souharda cooperative is to help one another. Our objective is to ensure that the cooperative benefits as many people as possible. One should help another and contribute to their growth," he said.
Mr. Al-Hussaini stated that the cooperative will examine the feasibility of mobilising interest-free fixed deposits and using the funds to provide interest-free loans to poor people. This initiative, if implemented, would be a significant step toward financial inclusion for disadvantaged groups.
Suryakanth, Souharda Cooperative Division Development Officer, who attended as the guest of honour, highlighted the distinctive working style of souharda cooperatives. He urged them to function in a manner that is beneficial to their members. Recalling his interaction with the late Syed Shah Khusro Hussaini about nine years ago, he expressed admiration for the way the annual report was presented.
Mr. Suryakanth urged members who have taken loans to repay them regularly. He noted that the growth of cooperative banks depends on the support of depositors and timely repayment by borrowers. He also encouraged cooperative representatives to participate in meetings of souharda cooperatives in Bengaluru, which would provide opportunities to interact and build professional networks.
Secretary Mohammed Moinuddin presented the annual report for 2025-26 and responded to questions from members. He said that insurance has been made mandatory for loans from the previous year and that the annual dividend will be utilised for socially beneficial activities. The budget for 2026-27 was also presented during the meeting.
Souharda cooperatives, which operate under the Karnataka Souharda Sahakari Act, are member-owned institutions designed to promote mutual assistance and community development. This cooperative's proposed interest-free loan scheme aligns with that mission, potentially easing the financial burden on low-income families in the region.
During the event, Mr. Al-Hussaini was felicitated by several customers. Syed Murtuza Al-Hussaini was honoured for holding the highest number of shares, while prominent members and those who have repaid their loans promptly were also recognised.
