Individual Business Loans

The Individual Business Loan Product has been designed for the JLG Clients who have gradually increased their income over a period of time and now require higher ticket size loan amount in their individual capacity to diversify/modify their business.
In order to meet the increasing funding requirement of customers who have completed multiple loan cycles and are matured borrowers, our Bank has introduced individual business loans for amounts of 100,000, 150,000 and 200,000.
This product is categorized under Priority Sector Lending.

Apply online

FAQs
Fees and Charges
Features
Eligibility

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:
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 the Utkarsh Small Finance Bank Ltd.
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 12 Months/24 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.

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.

Processing fee 1% of Loan Amount plus applicable taxes for Loan Amounts more than Rs. 25,000
Rs. 100 plus applicable taxes per instances subject to non-collection of EMI within the 3 working days from the date of bouncing.
No Penal Interest and Foreclosure Charges.

The key features of the product “Micro Banking Business Loan” are as follows-

A Term Loan available in three ticket sizes, i.e., 1 Lakh, 1.5 Lakh & 2 Lakh.
The rate of interest is 23% per annum.
Tenure: 12 Months / 24 Months with monthly repayment frequency.
This product is to ascend business in order to increase income requirement for livelihood purpose.

All existing JLG Loan Clients are eligible subject to-

The Applicant must have a current running JLG Loan from Utkarsh Small Finance Bank 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 at the current residence from 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: 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 the Utkarsh Small Finance Bank.
Clients should not have loans from more than three financial institutions including Utkarsh Small Finance Bank.
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.
Our Bank identifies a subset from its JLG customers, who are eligible for individual loans through good credit behavior and relatively higher size fund requirement

FAQs
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:
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 the Utkarsh Small Finance Bank Ltd.

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 12 Months/24 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.

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.
Fees and Charges
1. Processing fee 1% of Loan Amount plus applicable taxes for Loan Amounts more than Rs. 25,000
2. Rs. 100 plus applicable taxes per instances subject to non-collection of EMI within the 3 working days from the date of bouncing.
3. No Penal Interest and Foreclosure Charges.
Features
The key features of the product “Micro Banking Business Loan” are as follows-
1. A Term Loan available in three ticket sizes, i.e., 1 Lakh, 1.5 Lakh & 2 Lakh.
2. The rate of interest is 23% per annum.
3. Tenure: 12 Months / 24 Months with monthly repayment frequency.
4. This product is to ascend business in order to increase income requirement for livelihood purpose.
Eligibility
All existing JLG Loan Clients are eligible subject to-
1. The Applicant must have a current running JLG Loan from Utkarsh Small Finance Bank 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.
2. 1 Male Co-borrower (close relative) is mandatorily required.
3. The Applicant must be residing at the current residence from last 3 years.
4. Running business/income generating activities for more than 3 years with one or more year in the current line of business.
5. Not applicable for start-ups/consumption purposes.
6. 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)
7. Client should have Savings Account with the Utkarsh Small Finance Bank.
8. Clients should not have loans from more than three financial institutions including Utkarsh Small Finance Bank.
9. Client must close existing JLG loan before disbursement of Business Loan.
10. 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.
11. Our Bank identifies a subset from its JLG customers, who are eligible for individual loans through good credit behavior and relatively higher size fund requirement