Referring to his experience as chairman of a cooperative bank in Gujarat, Union Home and Cooperation Minister Amit Shah said small loans have exceptionally strong repayment rates, as ordinary and lower-income borrowers are generally sincere in meeting their financial obligations. Shah said his bank had introduced collateral-free loans of up to Rs 2.5 lakh, a scheme that continues today with the limit increased to Rs 5 lakh. He said the experience demonstrates that the smaller the loan, the better the recovery, highlighting the financial discipline of small borrowers. Shah also emphasised the role of cooperatives in generating self-employment and building businesses by pooling small contributions. He described this collective mobilisation of small resources as the fundamental strength of the cooperative movement.