Products and Services
In accordance with the Master Direction – Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022
Products at a glance:
| Loan | Minimum Interest Rate(%) | Maximum Interest Rate (%) | Average rate of interest in last quarter/last month (%) | Processing Fees (% of the loan) |
| Joint Liability Group (JLG) Loan | 26.50% | 26.50% | 26.50% | 1.50% |
| Micro Enterprise Loans (MEL) or Individual Loans (IL) | 26.50% | 26.50% | 26.50% | 1.50% |
| Water and Sanitation (WASH) Loans | 26% | 26% | 26% | 1.50% |
1. Joint Liability Group (JLG) Loan:
| Product name | Joint Liability Group (JLG) |
| Brief description of the products | JLG is a lending model that enables a group of individuals (usually five) to take loans for income generating activity by forming a group, wherein group members guarantee each others' loans. |
| Target Segment (Borrowers) | Female |
| Loan Amount | INR 10,000 - 60,000 |
| Loan Tenure | 12/18/24 months |
| Repayment Frequency | Bi-Weekly, 2 Bi-Weekly, Monthly |
| Interest Rate (w.e.f. 04.07.2023) |
Min - 26.50%
max - 26.50%
Avg. - 26.50%
(per annum on reducing balance)
|
| Loan Processing Fee | 1.50% (of loan amount) + 18% GST |
|
Life Insurance
Premium covering both client & guarantor
|
At actuals |
2. Micro Enterprise Loans (MEL) or Individual Loans (IL):
| Product name | Micro Enterprise Loans (MEL) or Individual Loans (IL) |
| Brief description of the products | Microenterprise loan is given to the individuals for working capital or business expansion purposes who have atleast 3 years old business. The tenure of the Loan is 2 years. This loan can be sanctioned to male and female both |
| Target Segment (Borrowers) | Female or Male |
| Business Capacity/ Turnover | 3- 10 lacs per annum |
| Loan Purpose | Credit for working capital or business expansion |
| Loan Amount | INR 50,000 - 1,00,000 |
| Loan Tenure | upto 24 months |
| Repayment Frequency | Monthly |
| Interest Rate (w.e.f. 30/07/2023) |
Min - 26.50%
max - 26.50%
Avg. - 26.50%
(per annum on reducing balance)
|
| Loan processing fee | 1.50% (of loan amount) + 18% GST |
|
Life Insurance
Premium covering both client & guarantor
|
At actuals |
3. Water and Sanitation (WASH) Loans:
| Product name | Water and Sanitation (WASH) Loans |
| Brief description of the products | Wash loan is given to the individuals for sanitation facilities including construction/ refurbishment/ renovation of household toilets and water improvements. |
| Target Segment (Borrowers) | Female |
| Loan Amount | INR 20,000 - 30,000 |
| Loan Tenure | 12/18/24 months |
| Repayment Frequency | Bi-Weekly, 2 Bi-Weekly, Monthly |
| Interest Rate (w.e.f. 01.06.2023) |
Min - 26.00%
max - 26.00%
Avg. - 26.00%
(per annum on reducing balance)
|
| Loan Processing Fee | 1.50% (of loan amount) + 18% GST |
|
Life Insurance
Premium covering both client & guarantor
|
At actuals |
