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:
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 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?
- First Cycle: 1,00,000 to 2,00,000
- Subsequent Cycle: 1,00,000 to 2,50,000
What is the tenure of Loan?
The Borrower and/or Co-borrower can repay the facility in 24, 30, 36, 42, 48 Equated Monthly Installments.
What is the rate of interest to avail this loan?
The rate of interest applicable is 24% per annum on reducing balance basis.
Who can become a Co-Borrower with respect to close relatives?
Co-Borrower can be either spouse or unmarried son/daughter.
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 in monthly installments through Standing Instruction (SI).
Does this facility require 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 the 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..