Microfinance - Group Lending

Benefits Of Our Group Loan

• No collateral required for loan
• Flexible repayment dates
• Insurance cover for every borrower and spouse. Premium to be borne by the borrower

Fees & Charges

• Processing Fees up to 1 % of Loan amount + applicable taxes (payable before disbursement of Loan)
• Rate of Interest Range

  1. Minimum Rate of Interest: 22%
  2. Maximum Rate of Interest: 27%
  3. Average Rate of Interest: 24.5%
• Any Legal cost/charges At actuals + applicable taxes
• Recovery-related charges - At actuals + applicable taxes
• Stamp duty charges - At actuals + applicable taxes
• Statutory Charges - At actuals + applicable taxes
• Other Charges

  1. Penal interest - NIL
  2. Foreclosure Charges - NIL
  3. Part payment Charges - NIL
  4. Prepayment Charges - NIL
• Any change in interest rate or any other charge shall be informed to the borrower well in advance and these changes shall be effective only prospectively

Eligibility Norms

• Annual household income should be less than INR 3 lakhs
• Borrower should be between 18 years to maximum 60 years at the end of loan tenure
• Borrower should be involved in income generation activity

Other Details

• Fair Practice Code - English / हिन्दी / ಕನ್ನಡ / తెలుగు / ગુજરાતી / मराठी 

• Training, if any, offered to the borrowers shall be free of cost

Risk Gradation

All 'Borrower/s' on the loan facility are hereby informed that the company has the following approach and considers the following factors for assessing the gradation of risks for each Borrower:

• Profile, the market reputation of the borrower including usage of internal credit scoring models leveraging traditional approaches like Bureau performance as well as alternative data sources,
• Inherent nature of the product, type/nature of the facility, refinance avenues, whether the loan is eligible for bank financing, loan to value of asset financed,
• Tenure of relationship with the borrower, past repayment track record, and historical performance of our similar clients,
• Overall customer yield, future potential, repayment capacity based on cash flows and other financial commitments of the borrower,
• Nature and value of primary and secondary collateral/security,
• Type of asset being financed, end use of the loan represented by the underlying asset,
• Interest, default risk in the related business segment,
• Regulatory stipulations, if applicable, and
• Any other factors that may be relevant in a particular case
• Tenure, quantum, repayment schedule, and structure (including proposed moratorium, if any) of the proposed loan

The rate of interest for the same tenor for different clients can be different depending upon the combination of one or more factors listed above.