Micro Loans

Microloans are short-term group loans with smaller loan amounts that can be availed by self-employed, start-ups, micro-enterprises, small businesses & individuals with low capital requirements. These are designed for our customers to provide them with solutions to meet diverse needs & gain financial independence.

Fincare Small Finance Bank provides a varied range of loan products to the micro banking customers falling under Unbanked/Semi-unbanked geographies to meet their long- and short-term credit needs with an intent of loan utilization for income generating purpose.

Group Loans

Group loans is a unique financial service for low-income groups. To obtain such a loan it is necessary to form a group of two or more individuals (female borrowers only) who can run businesses that can earn income & have been active. Individuals who are willing to take group guarantee for each other can form groups to avail the loan.

These are loans given under the Joint Liability Group (JLG) model. Group loans are offered for using loan/credit for income generating activities to improve their livelihood. Fincare Small Finance Bank offers Group loans at affordable interest rate to its borrowers. These are collateral free loans offered to micro banking customers residing in rural pocket of Bank’s Operating geographies.

Product Features
Features Attributes
Loan Amount
  • Minimum Loan Ticket size is ₹ 20,000/-
  • Maximum Loan Ticket Size is ₹ 55,000/-
Age Group
  • Between 18 to 59 years on the day of onboarding
Loan Tenure
  • Minimum 18 months
  • Maximum 24 months
Security
  • Group guarantee
Processing Fee*
  • 1.5% Processing Fee for Loan Products with Ticket size > ₹ 25,000/-
  • No processing Fee for loan Products with Ticket size <= ₹ 25,000/-

*GST applicable on Processing Fee
Rate of Interest*
  • Minimum ROI is 23.25% p.a.
  • Maximum ROI is 26% p.a.

Note* :

  • Rates effective from 1st Jan’22
  • Loan amount is applicable for FY 2023
  • Product features are subject to changes from time to time as stipulated by bank through its communication channels
Eligibility Criteria

Applicants must meet the following requirements to be eligible* for the loan:

  • Annual Household Income upto to ₹ 3 Lakh, where household shall mean an individual family unit, i.e., husband, wife, and their unmarried children. (Referring RBI master Direction dated 14th March’22)
  • Female borrowers only as stipulated in Bank’s Group lending policy.
  • Loans will be provided only for income generating activities.
  • Should not have an adverse credit record.
  • Should be willing to take up group guarantee.
  • Other Terms and Conditions for Group loans are applicable*.

Note* : Bank reserve rights to reject the loan application which are not falling under Bank’s Group Lending policy and specified Terms & conditions and follows environmental, social, and ethical governance (ESG) framework to filter out negative profiles.

KYC Documents

Applicants must produce the below KYC documents at the time of onboarding for authentication.

Primary KYC ID Secondary KYC ID
  1. Aadhar
Anyone of below KYCs-
  1. Voter ID
  2. Ration Card
  3. PAN card
  4. Driving License
  • Residence Proof: Any of the valid KYC documents
  • In case if PAN card is not available, applicant must provide Form 60.

For further information, please contact the nearest Fincare Small Finance Bank branch or call 1800 313 313

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