Why is this scheme launched?
This scheme is launched to provide an instant credit to rural masses in order to meet their emergent fund requirements to support their livelihood in COVID-19 pandemic.
Who is eligible for this loan and what are the conditions associated with it?
The existing Joint Liability Groups enjoying credit facilities from the Utkarsh Small Finance Bank with satisfactory loan repayment record are eligible for this loan. It is in addition to the existing JLG Loans extended to the client.
All existing JLG Loan Clients are eligible subject to-
- Existing loan repayment is regular as on February 29, 2020.
- Existing JLG loans are disbursed till February 29, 2020.
- Have not availed loans from any other financial institutions for the same purpose.
- Clients with JLG Loan maturing until August 31, 2020 are not eligible for the product.
- Clients should not have loans from more than three financial institutions including Utkarsh.
- The combined outstanding of the existing loans and proposed loans should not be more than Rs. 1,25,000/-.
All the other JLG Terms & Conditions related to subsequent cycle loan shall apply.
Can a new Joint Liability Group avail this scheme?
No. This scheme is only for the existing JLG Clients enjoying credit facilities from the Utkarsh Small Finance Bank.
What is the Loan amount limit under this scheme?
Loan amount is available in two denominations- Rs. 6,000/- & Rs. 10,000/-
What is the tenure of Loan?
This loan is to be repaid within maximum duration of 12 Months from date of disbursement.
What is the rate of interest to avail this loan?
The rate of interest applicable is 15% p.a. (Diminishing).
What is the nature of this product?
This product can be availed as a Term Loan.
Does Borrower needs to contribute any margin?
No margin is required to be contributed by the Borrower of this loan.
What is the Quantum of Loan?
The quantum decision is based on current credit assessments parameters that is applicable for JLG customers of the bank.
When can the loan be disbursed?
The loan can be disbursed on the scheduled Center Meeting day.
What will be the repayment schedule?
Loan is to be repaid in Bi-fortnightly/ Fortnightly/Weekly instalments.
Does this facility requires any additional security?
No, the scheme does not require any additional security.
What is the margin requirement for this scheme?
What is the Processing Fee charged to avail this loan?
There is no Processing Fee.
What is the Insurance Fee charged to avail this loan?
Insurance Fee of Rs. 85/- (in case of Rs. 6,000/- loan amount) and Rs. 142/- (in case of Rs. 10,000/- loan amount) are applicable, covering both the Borrower & Guarantor respectively.