Microfinance - Group Lending

The Salient Feature Of Our Group Loan

A microfinance loan is defined as a collateral-free loan given to a household having annual household income up to ₹3,00,000. For this purpose, the household shall mean an individual family unit, i.e., husband, wife and their unmarried children.
All collateral-free loans, irrespective of end use and mode of application/ processing/ disbursal (either through physical or digital channels), provided to low-income households, i.e., households having annual income up to ₹3,00,000, shall be considered as microfinance loans.
Piramal Capital & Housing Finance Ltd. (Piramal Finance) shall provide the flexibility of repayment periodicity on microfinance loans as per borrowers’ requirements in line with Board approved Policy.
Loan for a group of 5 - 10 women members (Special loan for women entrepreneurs)
Simple and easy loan process
Minimum documentation
Loan tenure up to 24 months
Loans from Rs. 10,000 - Rs. 50,000

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

Minimum Interest Rate* (%)	Maximum Interest Rate* (%)	**Average rate of interest in Q1, FY 2023 -2024	Processing Fees (% of the loan)

22%

27%

25.8%

1%+GST as applicable

*Interest rates are calculated on a reducing balance basis per annum
**Average interest rate: It is the ‘weighted average interest rate’ calculated for the loans disbursed in the last quarter/month.
The loan amounts are used as the weights. The weighted average is arrived at by taking the sum of each loan’s interest rate multiplied by the loan amount and then dividing this sum by the total loan amount disbursed.
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

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