Loan products confirm to the convenience of clients in processing and loan servicing.
All the terms of loan are disclosed to the clients to maintain transparency, no
hidden charges in the name of value added services and compliance with statutory
requirements.
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General Loan (Abhilasha)
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Abhilasha stands for “Aspiration”. This loan is designed for economically active
low-income households who have an aspiration to improve their economic well-being.
The loan is offered in a group mechanism.
This is the most dominant loan product helping in driving financial inclusion of
low-income clients, predominantly women. Option of weekly repayments ensure that
the clients can save a little from their daily cash-flows and do not face repayment
stress. Loans are used for cash flow smoothening, predominantly for productive purposes.
The interest rates for this product is 12.5% flat, this translates into approximately
24.6% on annual declining basis. An additional 1% is charged upfront that makes
the annual effective charges as 26.6%. The effective rate would vary slightly depending
upon the tenor and frequency of repayment chosen by the borrower.
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Income Generating Loan (Samruddhi)
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Samruddhi stands for “prosperity”. For all group clients who have gainfully employed,
Abhilasha loan provides higher amount of funds to meet working capital needs, emergency
needs unbudgeted requirements particularly in case of seasonal bussinesses.
This loan offers an avenue to our microfinance clients to get flexibility of an
interim loan. This loan is also useful for temporary cash requirements like education,
health emergencies etc.
The interest rates for this product is 12.5% flat, this translates into approximately
24.6% on annual declining basis. An additional 1% is charged upfront that makes
the annual effective charges as 26.6%. The effective rate would vary slightly depending
upon the tenor and frequency of repayment chosen by the borrower.
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Micro Enterprise Loan (Pragathi)
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Pragathi stands for “Progress”. This product is offered to those microfinance clients
who have slightly higher economic well-being and have stable monthly cash-flows.
This helps the clients to avoid spending time on weekly meetings while at the same
time enjoy the benefits of sustained credit supply by virtue of peer pressure based
repayment discipline.
The interest rates for this product is 26% on annual declining basis. An additional
1% is charged upfront that makes the annual effective charges as 28%. The effective
rate would vary slightly depending upon the tenor and frequency of repayment chosen
by the borrower.
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Individual Loan (Sphoorty)
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Sphoorty stands for “Inspiration". This loan is offered to low/lower-middle-income
people running micro-enterprises or having any other stable income source. This
loan is delivered to individuals. This loan is given primarily to borrowers who
graduate to higher ticket sizes from group loans.
This loan product helps us go up the value chain and also to provide support to
our existing clients who have moved up the economic ladder.
This is a non micro finance loan given to middle income households. The interest
rates for this product is 26% on annual declining basis. An additional 1% is charged
upfront that makes the annual effective charges as 28%. The effective rate would
vary slightly depending upon the tenor and frequency of repayment chosen by the
borrower.
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Farm Equipment Loan (Karshak)
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Farm Equipment loans are offered to clients who want to finance purchase of Farm
Equipments either for cultivation or for transport. Farm Equipment is hypothecated
for the tenure of the loan.
Farm Equipment loan helps us increase the overall microfinance market pie by reaching
out to new client segments while leveraging on the existing distribution channel.
The interest rates for this product is 19-25% on annual declining basis. Rates charged
for used equipment is higher while it is lower for new equipment. An additional
1-2% is charged upfront. The effective rate ranges to about 29% but varies depending
upon the used/ new equipment, loan tenor and frequency of repayment chosen by the
borrower.
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