Why is this scheme launched?
This scheme is launched on the strong demand of JLG clients to provide higher ticket size loan to JLG clients in order to meet their requirements for their businesses.
Who is eligible for this loan and what are the conditions associated with it?
The existing Joint Liability Groups clients having credit facilities from the Utkarsh Small Finance Bank Ltd. with satisfactory loan repayment record are eligible for this loan.
All existing JLG Loan Clients are eligible subject to-
- The Applicant must have a current running JLG Loan from Utkarsh Small Finance Bank Ltd. and should be at least 24 months old JLG Client or should have completed at least 2 cycles of JLG income generating loans from the bank.
- 1 Male Co-borrower (close relative) is mandatorily required.
- The Applicant must be residing in the same house for last 3 years.
- Running business/income generating activities for more than 3 years with one or more year in the current line of business.
- Not applicable for start-ups/consumption purposes.
- Age Limitation:
Minimum Age- 23 Years (at the time of entry)
Maximum Age- 60 Years (at the time of closure of loan)
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 the Utkarsh Small Finance Bank.
- Clients should not have loans from more than three financial institutions including Utkarsh Small Finance Bank Ltd.
- Client must close existing JLG loan before disbursement of Business Loan.
- In case any JLG Loan has been closed earlier, subject to aforesaid conditions, then client can apply for Business Loan within 90 days from date of closure of the existing JLG Loan.
Can a client of newly formed Joint Liability Group client avail this scheme?
No. This scheme is only for those existing Loan Clients who have completed 24 Months or at least 2 cycles of JLG income generating loans availed from the Utkarsh Small Finance Bank.
Is it required by the client to attend the Centre Meetings, in case Business Loan is availed?
No, The Client will not have to attend the Centre Meetings and, she will have to close the existing JLG loan to avail the Business Loan.
Can this Loan be availed to start a new business?
No, this loan is available for the existing business only.
Is the Client required to close any loan before availing Business Loan?
Yes, the client is required to close the running JLG Loan to avail Business Loan. In case any JLG Loan has been closed earlier, subject to terms & conditions, then client can apply for Business Loan within 90 days from date of closure of the existing JLG Loan.
What is the Loan amount limit under this scheme?
Business Loan is available in three ticket sizes, i.e., Rs.1 Lakh, Rs.1.5 Lakh & Rs.2 Lakhs respectively.
What is the tenure of Loan?
This loan is to be repaid within maximum duration of 24 Months/36 Months (as applicable) from the date of disbursement.
What is the rate of interest to avail this loan?
The rate of interest applicable is 23% p.a. (Diminishing).
Who can become a Male Co-Borrower with respect to close relatives?
The male Co-Borrower can be any of the family member, i.e., Husband/Son/ Father-in-Law.
When can the loan be disbursed?
The loan can be disbursed subject to positive credit checks and after fulfilment of all pre-disbursement documentation.
What will be the repayment mode?
Loan is to be repaid through Standing Instruction (SI) Mode in Monthly instalments.
Does this facility requires any security or margin?
No, the scheme does not require any security or margin.
What is the Processing Fee charged to avail this loan?
Processing Fee= (1% of Loan Amount) + GST.
If a client is running a Dairy Business and has 6 milch animals, can she apply for Business Loan to build a shed for it?
Yes, she can apply for Business Loan and the loan approval shall be subject to the fulfilment of other eligibility criteria.