Loan schemes by thrift societies are mutual schemes. Thrift societies, also known as savings and credit cooperatives, are financial institutions that are owned and operated by their members. The main purpose of these societies is to provide affordable financial services, including loan schemes, to their members. In mutual schemes, members contribute money into a common pool, from which loans are then made available to members who need them. The interest paid on the loans is used to pay dividends to the members. Therefore, it is a mutual scheme because the members are both the owners and beneficiaries of the scheme.