JLG Income Generation Loans
Collateral-free micro-credit for women entrepreneurs to expand their current business or start a new one — through the Joint Liability Group lending model.
JLG Income Generation Loans
The Income Generating Loan is used for a variety of activities that generate income for their families, which enhances lifestyle of the clients. This helps them clients to expand their current business or to start a new business.
| Type of loan | Product A | Product B | Product C | Product D | Product E | Product F | Product G | Product H |
|---|---|---|---|---|---|---|---|---|
| Eligible Criteria | Customer availing Loan for the first time in the newly started branches. | Customer who repays the loan on-time and with long term relationship. | Customer who repays the loan on-time and with long term relationship. Also for fresh customers in the vintage branches. | Customer who repays the loan on-time and with long term relationship. | Customer who repays the loan on-time and with long term relationship. | Customer who repays the loan on-time and with long term relationship. | Customer who repays the loan on-time and with long term relationship. | Customer who repays the loan on-time and with long term relationship. |
| Loan term | 18/24 months | 24 months | 24 months | 24 months | 24 months | 24 months | 24 months | 24 months |
| Repayment Frequency | Weekly, Fortnightly and Monthly | Weekly, Fortnightly and Monthly | Weekly, Fortnightly and Monthly | Weekly, Fortnightly and Monthly | Weekly, Fortnightly and Monthly | Weekly, Fortnightly and Monthly | Weekly, Fortnightly and Monthly | Weekly, Fortnightly and Monthly |
| Loan size (Amount in ₹) | ₹30,000 | ₹35,000 | ₹40,000 | ₹45,000 | ₹50,000 | ₹60,000 | ₹70,000 | ₹75,000 |
| Customer Insurance | ₹310 | ₹362 | ₹413 | ₹465 | ₹516 | ₹620 | ₹723 | ₹775 |
| Guarantor Insurance | ₹310 | ₹362 | ₹413 | ₹465 | ₹516 | ₹620 | ₹723 | ₹775 |
| Processing Fees | ₹600 | ₹700 | ₹800 | ₹900 | ₹1,000 | ₹1,200 | ₹1,400 | ₹1,500 |
| Service Tax on Processing Fee | ₹108 | ₹126 | ₹144 | ₹162 | ₹180 | ₹216 | ₹252 | ₹270 |
Credit Sanction Process
Eligibility
Product A is for customers availing a loan for the first time in newly started branches. Products B through H are for customers who repay on-time and maintain a long-term relationship with UFin. Product C is additionally available to fresh customers in vintage branches.
Household Income Assessment
Income assessment plays a vital role in onboarding customers and ensuring repayment can be sustained throughout the tenure. Each household's sources of income and expenses are captured in the UFin income assessment sheet. A customer is sourced only when the assessment is found satisfactory.
Repayment Capacity (FOIR)
Once household income and expenses are captured, the Fixed Obligation to Income Ratio (FOIR) is calculated. Both thresholds below must be met for a customer to be eligible for a UFin loan.