Microfinance companies believe in the provision of microcredit – a tool necessary to bring inclusive growth to all sectors via financial inclusion. They aim to help poor communities in establishing small businesses by helping them gain access to credit. The beneficiaries of such MFI are:
∙ Fishermen
∙ Artisans
∙ Farmers
∙ Small entrepreneurs
∙ Individuals from the deprived communities
These banks aim to:
∙ Provide livelihood possibilities to the marginalized women of rural India
∙ Enhance the present living conditions of those residing in the very many villages and slums of India
∙ Help raise capital for small entrepreneurs amongst the rural populace
Let’s shed light at some of the top Microfinance companies in DELHI-NCR
Products/Services
1. Joint Liability Group Loans
∙ Loan amount – Ranging between Rs.15,000- Rs.50,000
∙ Interest rate – Ranging between 24.04% and 24.60% on a reducing balance method.
∙ Processing fee – 1%; excluding taxes.
∙ Tenure – Between 1 year to 2 years; depends on the loan amount.
2. Emergency Loans
∙ Loan amount – Minimum Rs.3000, and maximum of Rs. 5,000
∙ Rate of interest – 22% per annum on a reducing balance method
∙ Tenure – Maximum of 8 months
∙ Processing fee - None
Eligibility
The individuals applying or loan must adhere to the following criteria:
∙ Women between 18-55 years of age
∙ Permanent resident of a village or slum
∙ It must be a joint liability group
Products/Services
Humana People to People India offers microloans to women from across different poor strata of the country. The loans provided require no collateral in order to get sanctioned. The women use the loan amount in activities and skills that would generate income for them and their dependents.
The model used by the microfinance company is the Group Lending Model with enough stress given on accumulating financial literacy. It has partnered with many formal banks to achieve the same.
Average Loan Size – Rs.22,000.
Borrowers of these loans usually use the amount to rear cattle and sustain their own business practices.
Eligibility
The individuals applying or loan must adhere to the following criteria:
∙ Women between 18-55 years of age
∙ Permanent resident of a village or slum
∙ It must be a joint liability group
Products/Services
The following products and services are provided to poor women by SV Creditline Microfinance:
1. Joint Liability Group
∙ Loan amount
a. 1-year product - Rs. 15,00 – Rs. 26,000
b. 1.5-year product – Rs.30,000
c. 2-year product – Rs.35,000
∙ Rate of Interest – 24.7%
∙ Processing Fee – 1% of the loan; plus GST is applied.
∙ Insurance Tenure – 1-3 years as per tenure
2. SME Loans
Loans provided to Small and Medium Enterprises help them operate eco-friendly rickshaws, meet
∙ Loan amount -
a. Housing Loan – Rs.50,0000 to Rs. 5,00,000
b. Green Loan – Up to Rs.1,20,000
c. Individual Loan – Up to Rs. 1,00,000
∙ Rate of Interest – 24.7% for the Housing and Green Loan; 30% for Individual loans.
∙ Processing fee -
a. Housing loan – 2% of the loan amount; plus GST
b. Green Loan – 1% of the loan amount; plus GST
c. Individual Loan – 6% of the loan amount; plus GST
Eligibility
The individuals applying or loan must adhere to the following criteria:
∙ Women between 18-55 years of age
∙ Permanent resident of a village or slum
∙ It must be a joint liability group
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