The deduction will also be allowable in respect of re-payment of loans borrowed by an assessee from the Central Government or any State Government, or any bank, including a cooperative bank, or Life Insurance Corporation, or National Housing Bank, or certain other categories of institutions engaged in the business of providing long term finance for construction or purchase of houses in India.
As per the definition above, C0o-operative credit socieites are not coming under the above categories. Hence, repayment of principal amount not to be allowed under Section 80(C)