Cooperative Societies Act, 1912
29. Restrictions on loans
(1) A registered society shall not make a loan to any person other than a member :
Provided that, with the general or special sanction of the Registrar, a registered society may make loans to another registered society.
(2) Save with the sanction of the Registrar, a society with unlimited liability shall not lend money on the security of moveable property.
(3) The 4[State Government] may, by general or special order, prohibit or restrict the lending of money on mortgage of immoveable property by any registered society or class of registered societies.