Credit Societies

Cooperative Credit Societies constitute the largest sub-sector of Cooperative Movement in the Punjab. These societies provide short, medium and long-term credit facilities to their members. Short-term credit is provided for purchase of seed, fertilizer, pesticides etc. and medium and long term loans are given for purchase of tractors, agricultural machinery, cattle, installation of tube well, etc.

In order to provide credit to its members, these societies raise funds through share capital and borrowings from the Punjab Provincial Cooperative Bank Ltd. Though thrift is a vital objective of the movement, most of these societies have made very slow progress in the growth of savings.

The Cooperative Credit Societies of Punjab are:

  • Farm Service Centres
  • Markaz Associate Farms Ion IRDP (Integrated Rural Development Programme) Cooperative

Farm Service Centres

Cooperative Farm Service Centers formed a part of Rural Reconstruction of Credit and Agricultural Marketing Scheme (RRC&AM), which was implemented during the Third Five Year Plan.

This credit society was formed to:

  • Coordinate the activities of Services Societies for improving procurement and distribution of seed, fertilizers and insecticides etc.
  • Assist in introduction of mechanized farming among the farmer members of Cooperative Societies by making available tractors and other agricultural implements on hire and through repairs, overhauling facilities of these implements
  • Assist in establishment of processing units owned and controlled by small farmers

Markaz Associate Farms Ion IRDP Cooperative

These central institutions were organized with the objective of providing credit and agricultural marketing facilities on cooperative basis in Integrated Rural Development Project (IRDP) areas and were patterned after the Cooperative Farm Service Centres already existing in the province. The area of operation of these institutions was confined to IRDP areas. Since the IRDP schemes have been banned, these associations have been become defunct.