Kathmandu. Co operatives have been found to be giving loans on the basis of without looking at the collateral. During the on-site inspection of the National Cooperative Regulatory Authority, it was found that most of the cooperatives were giving loans without looking at the collateral. 

The on-site monitoring carried out by the authority in some big cooperatives has revealed that cooperatives have been issuing loans on the basis of papers brought as collateral by . 

So much so that cooperatives have been found to give loans worth lakhs of rupees on paper and do not make any provision for losses in bad loans. On the other hand, family members have been found to be using money arbitrarily, not renewing the recovered loan and neglecting to recover the default loan .

The NRA has concluded that most of the cooperatives have increased arbitrariness in the cooperatives due to the family member loan committee and the mort gage valuation committee. 

On the other hand, is suspected to have been deposited by large savers who have deposited large sums of money in old and troubled cooperatives .