Cooperative plans interest-free loans for the poor
The Khaja Bandanawaz Minority Souharda Cooperative is exploring a new model to provide interest-free loans to economically weaker sections by mobilizing interest-free fixed deposits. During their annual general body meeting, leadership emphasized the cooperative's commitment to community growth and financial sustainability.
Why it matters
This initiative represents a community-based financial model aimed at poverty alleviation through interest-free micro-lending.
The Khaja Bandanawaz Minority Souharda Cooperative Ltd. is considering mobilising interest-free fixed deposits and extending interest-free loans to economically weaker sections, cooperative president Syed Mohammed Ali Al-Hussaini has said.
Addressing the annual general body meeting of the cooperative for 2025-26 at the KBN auditorium in Kalaburagi recently, Mr. Al-Hussaini said that the cooperative is functioning well with the support of its customers and is 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.
He said that the cooperative will explore the possibility of accepting interest-free fixed deposits and using the funds to provide interest-free loans to poor people.
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