Crescent Cooperative Ltd (CCL) Anantnag J & K Head Office: General Bus Stand, Anantnag Kashmir (www.ccljk.org, Phone: 9469719408) Revised Debit, Credit Policy of CCL (Policy of Borrowing and Lending) (Effective from February 1st 2019) Crescent Cooperative Limited (CCL) Anantnag is an autonomous financial institution. It aims to provide its members a hassle free medium for ‘interest free financial transactions’. To achieve its aims the cooperative has devised its debit credit policy strictly in accordance to ‘Sharia’ rules that provide a guideline for interest free transactions. Following is a broad outline of its Debit Credit Policy A. Policy of Borrowing Funds (Debit Policy): The Cooperative will borrow funds under following four heads. The Cooperative will borrow funds from its members to create a pool of resources/funds called as ‘Credit Capital’ to run its business. This credit capital will be raised by accepting funds from the members (creditors) under two categories: Compulsory credits: Every member will have to pool a compulsory credit as decided by BOD to be retained by the Coop. till the member is willing to continue his/her membership. Investment credits: This type of credit will be accepted by the Coop. from any of its members, who are willing to invest their earnings/surplus in the business of the Cooperative. Such creditors (members) will be partners in the Cooperative business on the principle of profit loss sharing under a time bound frame work. The Cooperative will accept surplus funds from its members under the principle of ‘Wadiah’ with special permission to use them, without any loss incurred on the members. Such funds will have no right in any gains of the Cooperative. To inculcate the habit of thrift and savings the Coop. will accept thrift and saving amounts from its members as simple credit. Such amounts will not be subject to any risk of loss incurred by the Coop. However in case of Coop. gains some voluntary gift returns will be paid to such members. The cooperative will also accept large scale investment loans from members / non-members on mutually agreed upon terms and conditions provided there is not involvement of any interest (Riba) in these transactions. B. The Policy of Lending Funds (Credit Policy): The cooperative will lend its members under following 5 heads: The cooperative will fulfill the credit needs of its members, for acquiring the needed assets, through the interest free practice of ‘Bia Transactions’ viz. ‘Credit Sale’ etc. where in the required assets will be arranged/ purchased by the cooperative as per the demands and requirements of its members and will be then ‘Sold on Credit’ to them under mutually agreed upon sales price and recovery terms and conditions (i.e. EMI etc.) 2. The cooperative will also fulfill the credit needs of its members for acquiring needed assets on the Principle of ‘Ijerah’ i.e. leasing/ purchasing on rental bases. Note:- Craft centers and other business enterprises run by members can also be financed under these schemes of credit sale and Ijerah. 3. The cooperative will also fulfill the ‘genuine credit needs’ of its members (which cannot be covered under ‘credit sale’ or ‘ijerah schemes’) through ‘cash credit scheme’ under pre determined recovery terms conditions and levy some service charge on them for arranging the credit. However the income earned through such service charges will in no way be added to the gains of the creditors but will be strictly spent to meet the official expenses of the cooperative only. 4. The cooperative will also fulfill the credit needs of its members under ‘self employment schemes’ under this scheme the gainful ‘self employment projects’ of it’s members will be financed through the principle of ‘Mazaribat’ i.e. partnership of capital and labour. In this scheme capital needed for the project will be provided by the cooperative while the labour and expertise of the member will be utilized. The profit, loss if any and recovery of credit will be governed by predetermined terms and conditions. 5. The cooperative will also fulfill the credit needs of its members under ‘employment generation/investment projects. Under this scheme the gainful employment generation/ investment projects launched by its members can be financed through principle of ‘Musharikat’ i.e. joint venture projects with pre-determined terms and conditions. In this scheme the capital needed for the project will be shared by all the partners in the venture while the labor/expertise needed will be utilized against any salary or service charges.