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Micro Banking Business Loan

At Utkarsh Small Finance Bank, the Micro Banking Business Loan (MBBL) Product has been designed for existing JLG Clients, who have gradually increased their income over a period of time, and now require higher ticket size loan in their respective individual capacity to diversify their business.The loan amounts ranging from ₹1,00,000 to ₹ 2,50,000.

In order to meet the increasing fund requirement of matured JLG customers, who have completed multiple loan cycles, the Utkarsh Small Finance Bank has introduced individual business loan of amounts ranging from ₹ 1,00,000 to ₹ 2,00,000 for the first cycle (in multiples of ₹ 10,000) and subsequent cycle loans of ₹ 1,00,000 to ₹ 2,50,000 (in multiples of ₹ 10,000). The repayment tenure for such loans is 24 to 48 months.

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Rate of Interest: 25% per annum on reducing balance basis
Processing fee 1% of Loan Amount plus applicable taxes/ GST for Loan Amounts more than ₹ 25,000
No Prepayment Charges
In case of delayed payments, the Bank shall charge interest at the rate applicable to the facility on overdue principal

Ticket sizes- First Cycle: ₹ 1,00,000 to ₹ 2,00,000 (in the multiple of ₹ 10,000); Subsequent Cycle: ₹ 1,00,000 to ₹ 2,50,000 (in the multiple of ₹ 10,000)
Tenure - The Borrower and/or Co-borrower can repay the facility in 24, 30, 36, 42, 48 Equated Monthly Installments
Collateral free loan
This product is to help businesses in order to increase their income requirements for livelihood purposes.

Existing JLG Clients with minimum 18 Months Repayment Track Record with minimum six (06) months' RTR of current loan or Existing MBBL clients having completed 50% of tenure.
The percentage of 'Monthly Debt Obligations' towards all existing loans as well as the loan under consideration to 'Monthly Household Income' should not be more than 50%.
One (01) Co-borrower is mandatorily required and must be either spouse or unmarried son/daughter.
Residing in own house in the village/ for at least three (03) years.
It will be given for running businesses/ income generating activities which have been there for more than two (02) years with one (01) year or more in the current line of business.
Age Limitation: For Applicant-
Minimum Age- 23 Years (at the time of entry)

Maximum Age- 60 Years (at the time of closure of loan)

For Co-Applicant-

Minimum Age- 18 Years (at the time of entry)

Maximum Age- 60 years (at the time of closure of loan)
Client should have Savings Account with Utkarsh Small Finance Bank.
Client must close the existing JLG/MBBL loan before the disbursement of Business Loan.
In case the JLG loan is already closed, client can apply for MBBL subject to 90 days not completed from the JLG loan closure date to the date of application

Apply to Micro Banking Business Loan

Loan calculator

Type of Customer

Regular

Senior Citizen

Select Fixed Deposit Date

Type of Fixed Deposit

Amount (₹)

₹

₹ 1 Lac

₹10 Cr

Tenure ( )

1 Month

120

Interest Rate (%)

1%

31%

Equated Monthly installments (EMI)

₹ 2,10,651

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Deposit Amount

Interest Earned

Interest Rate

8.00%

Interest Earned

₹ 3,50,452

Maturity Value

₹ 13,50,452

Maturity Date

20 Apr 2023

(Indicative interest rates for calculation only. click here for latest rates.)

FAQs

Why is this scheme launched?

This scheme is launched on strong demand from JLG clients to provide higher ticket size loans in order to meet their increasing fund requirements for their enhanced business scale and scope.

Who is eligible for this loan and what are the conditions associated with it?

The existing Joint Liability Group clients having credit facilities from Utkarsh Small Finance Bank Ltd. with satisfactory loan repayment record are eligible for this loan subject to:

Existing JLG Clients with minimum 18 Months Repayment Track Record (RTR) with minimum six (06) months' RTR of current loan or Existing MBBL clients having completed 50% of tenure.
The percentage of 'Monthly Debt Obligations' towards all existing loans as well as the loan under consideration to 'Monthly Household Income' should not be more than 50%.
One (01) Co-borrower is mandatorily required and must be either spouse or unmarried son/daughter.
Residing in own house for at least (03) years.
It will be given for running businesses/ income generating activities which have been there for more than two (02) years with one (01) year or more in the current line of business.
Not applicable for start-ups/consumption purposes.
Age Limitation:
For Applicant-
Minimum Age- 23 Years (at the time of entry)
Maximum Age- 60 Years (at the time of closure of loan)
For Co-Applicant-
Minimum Age- 18 Years (at the time of entry)
Maximum Age- 60 years (at the time of closure of loan)
Client should have Savings Account with Utkarsh Small Finance Bank Ltd.
Client must close the existing JLG/MBBL loan before disbursement of Business Loan.
In case the JLG loan is already closed, client can apply for MBBL subject to 90 days not completed from the loan closure date to the date of application.
Our Bank identifies a subset from its JLG customers, who are eligible for MBBL basis good credit behaviour and relatively higher size fund requirements.

Can a client of newly formed Joint Liability Group avail this scheme?

No. This scheme is only for Existing JLG Clients with minimum 18 Months Repayment Track Record (RTR) with six (06) months' RTR of current loan or Existing MBBL clients having completed 50% of tenure.

Is it required by the client to attend the Centre Meetings, in case Business Loan is availed?

No, the client is not required to attend the Centre Meetings once Business Loan is availed.

What is the Loan amount limit under this scheme?