Loans for bad credit - Ujjivan small finance bank loan

Ujjivan Small Finance Bank Limited: Financial Solutions for Everyone

Ujjivan Small Finance Bank Limited (USFB) has successfully transitioned from a leading microfinance institution (MFI) to a full-fledged Scheduled Commercial Bank. USFB's primary mission remains rooted in financial inclusion, focusing on providing banking and credit services to the unserved and underserved segments of society with transparency and efficiency.

The bank leverages its deep understanding of low and middle-income customer needs to offer a diverse and customer-centric portfolio of loan products.

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Key Loan Products Offered by Ujjivan SFB

USFB's loan offerings are designed to cater to both income-generating and personal financial needs across urban and rural markets:

1. Micro Loans / Group Loans:

   • Foundation: This is the bedrock of Ujjivan, based on the Joint Liability Group (JLG) model, primarily empowering women entrepreneurs.

   • Purpose: Funding working capital and fixed asset needs for small businesses and other income-generating activities in rural and semi-urban areas.

   • Advantage: Simple process, doorstep service, and easy access for those lacking traditional collateral.

2. Individual Loans (Personal Loans):

   • Purpose: To meet immediate financial requirements such as medical emergencies, weddings, debt consolidation, or education.

   • Target: Available for both salaried individuals and self-employed professionals (like doctors).

   • Features: Loan amounts typically range from ₹50,000 up to ₹15 lakhs (depending on eligibility) with flexible repayment tenure up to 60 months.

3. Home Loans (Affordable Housing):

   • Purpose: For the purchase, construction, extension, or repair of houses, focusing on the economically weaker and low-to-middle-income segments.

   • Support: Facilitates customers in availing benefits under the Pradhan Mantri Awas Yojana (PMAY) scheme, making homeownership affordable.

   • Variants: Includes loans for plot purchase and self-construction.

4. Micro Mortgages / Loan Against Property (LAP):

   • Purpose: Offers a secured loan option where customers can pledge their residential or commercial property to raise larger funds for business expansion or critical personal needs.

   • Benefit: Provides higher loan amounts at more competitive interest rates compared to unsecured loans.

5. Agriculture and Allied Loans:

   • Purpose: Providing necessary credit to farmers and those involved in allied activities like dairy, poultry, and pisciculture (fisheries).

   • Products: Schemes like the Kisan Pragati Card offer term loans and Overdraft (OD) facilities to ensure timely availability of funds for agricultural cycles.

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Interest Rates and Bank Ethos

• Competitive Pricing: USFB offers competitive interest rates, though these vary significantly based on the loan type. Secured loans like Home Loans and LAP often start from around 9.50% p.a. onwards, while Micro Loans and Personal Loans carry higher rates reflecting the higher risk associated with those segments.

• Transparency: The bank maintains a strong focus on transparent dealings, clearly communicating all fees (including processing fees) and the effective Annualized Rate of Interest (ARI) to the borrower, in adherence to RBI guidelines.

Ujjivan Small Finance Bank is committed to its dual objective: providing a secure banking platform and simultaneously driving financial empowerment for individuals who need it the most.

Do you want to know the eligibility criteria for a specific loan type, like the Personal Loan?