Presently, Sarwadi Finance offers group loans only.
Loan Size: Rs 15,000 to Rs 30,000 (max. Rs 25,000 for 1st cycle)
Interest Rate: 24% p.a. calculated on reducing balance basis
Processing Fee: 1% of the loan amount plus tax
Loan Tenure: 12 to 24 months (complies with RBI guidelines)
Description: This loan is given to a group of 5 to 15 women members who carry out small business activities.
The general eligibility criteria for availing the loans are listed below:
In the unfortunate event of natural or accidental death of the customer during the loan tenure, the insurance amount helps the nominee/beneficiary to pay off the outstanding loan and receive the surplus assured amount. We have partnered with HDFC Life to offer a Micro Insurance policy at affordable cost. It is a Pure Term Plan with no Maturity benefits. On the death of the life assured, the beneficiary will get the Sum Assured.
The other key features of the loan products are:
- Only women borrowers are eligible
- The borrower must be a member of a Joint Liability Group (JLG)
- The borrower must have an active bank account
- Household Annual Income of the borrower should not exceed Rs. 1,00,000/- or Rs. 1,60,000/- in rural area and non-rural area respectively
- Disbursement of the loan amount has a maximum limit of Rs. 50,000/-
- Loan should not exceed Rs. 25,000/- in the first cycle
- Total indebtedness of the borrower should not exceed Rs. 1,00,000/-
- The loans are disbursed directly in the customers bank account.
- No penalty is charged for delayed payment.
- Borrower and Co-borrower (family member) are covered under insurance.
- Prepayment of the loans are allowed without penalty.
- Loans are granted without any collateral.
- Loans are repayable by fortnightly or monthly instalments at the choice of the borrower/group.