interest free cooperative society
The sanghamam multi state cooperative society,the first co-operative society working on interest free principle will launch its operations in Kozhikode malappuram and alwaye.
The managing director of the society k. shamsudheen said the credit society will not take or pay interest on loans and deposits but would work on principles of profit and loss sharing in its transactions among share holders.The society will operate in states of kerala tamilnadu and pudussery.
Though the society works on interest free basis,we would not take the label of Islamic finance or Islamic banking as the society is registered under a general act the society would focus on providing loans to self employment and small scale ventures and would have people from all social and religious segments as members.
As per RBI study there are around of 5000 crores deposits lying in various banks with no interest claimed on them by depositors who are members of muslim community which do not receive interest due to reasons of faith.We hope to attract a share of such deposits and would aim to put it to productive use he added.