Micro Loans

Loans that change livelihood

*T&C

Micro Loans

Microloans are short-term group loans with smaller loan amounts that can be availed by self-employed, start-ups, micro-enterprises, small businesses & individuals with low capital requirements. These are designed for our customers to provide them with solutions to meet diverse needs & gain financial independence.
Fincare Small Finance Bank provides a varied range of loan products to the micro banking customers falling under Unbanked/Semi-unbanked geography to meet their long- and short-term credit needs with an intent of loan utilization for income generating purpose.

Group loans

Group loans is a unique financial service for low-income groups. To obtain such a loan it is necessary to form a group of two or more individuals (female borrowers only) who can run businesses that can earn income & have been active. Individuals who are willing to take group guarantee for each other can form groups to avail the loan.
These are loans given under the Joint Liability Group (JLG) model. Group loans are offered for using loan/credit for income generating activities to improve their livelihood. Fincare Small Finance Bank offers Group loans at affordable interest rate to its borrowers. These are collateral free loans offered to micro banking customers residing in rural pocket of Bank’s Operating geography.

Product Features

Features	Attributes
Loan Amount	Minimum Loan Ticket size is ₹ 18,000/- Maximum Loan Ticket Size is ₹ 70,000/-
Age Group	Between 18 to 59 years on the day of onboarding
Loan Tenure	Minimum 18 months Maximum 24 months
Security	Group guarantee
Processing Fee*	1.5% Processing Fee for Loan Products with Ticket size > ₹ 25,000/- No processing Fee for loan Products with Ticket size <= ₹ 25,000/- *GST applicable on Processing Fee
Rate of Interest*	Minimum ROI is 25.25% p.a. Maximum ROI is 26% p.a.

Note*

Rates effective from 1st May 2023
Loan amount is applicable for FY 2024
Product features are subject to changes from time to time as stipulated by bank through its communication channels

Eligibility Criteria

Applicants must meet the following requirements to be eligible* for the loan:

Annual Household Income upto to ₹ 3 Lakh, where household shall mean an individual family unit, i.e., husband, wife, and their unmarried children. (Referring RBI master Direction dated 14th March’22)

Female borrowers only as stipulated in Bank’s Group lending policy.
Loans will be provided only for income generating activities.
Should not have an adverse credit record.
Should be willing to take up group guarantee.
Other Terms and Conditions for Group loans are applicable*.

Note*

Bank reserve rights to reject the loan application which are not falling under Bank’s Group Lending policy and specified Terms & conditions and follows environmental, social, and ethical governance (ESG) framework to filter out negative profiles.

KYC Documents

Applicants must produce the below KYC documents at the time of onboarding for authentication.