Lending Model (Joint Liability Group (JLG)
Under this methodology the client segment is selected using the eligibility criteria of NFPL. Clients who are engaged in a regular income activity are motivated to form a group of five likeminded people of the same status and locality.
Loan SizeRs.10,000.00 to Rs.1,00,000.00
Tenure12,18.24 and 36 Months
Repayment FrequencyMonthly
Rate of Interest (Reducing Balance Method)Min - 18.00% (for unserved and underserved area)
Max – 24.00%
Avg. - 23.89%
Processing Fee1%
Individual Lending
Loans to address the working capital needs of small businesses operating out of authorized market places or clusters of shops organized under a trader’s association. Includes predominantly male customers.
Loan SizeRs.10,000.00 to Rs.1,00,000.00
Tenure12,18.24 and 36 Months
Repayment FrequencyMonthly
Rate of Interest (Reducing Balance Method)Min-18.00% (for unserved and underserved area)
Max – 24.00%
Avg. - 23.48%
Processing Fee1%
GST COLLECT
GST is collected @ 18 % on loan processing fees all loan amount disbursed to clients
INSURANCE
Actual cost of Insurance Premium i.e. @ 6.00 per thousand including Service Tax on loan amount disbursed to clients (in case of death of client during the currency of loan, insurance company pays the insured amount) is collected from client.
