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Samasta Microfinance

Samasta Microfinance is a non-banking financial institution that was introduced to provide financial assistance and services to individuals from low-income backgrounds in western and southern states. Their products and services include micro loans, group-based savings accounts, credit-linked insurance, and more. The financing offered can be used for varied purposes—clearing outstanding debts, paying educational expenses, managing emergency medical expenses, or starting small businesses.

Currently, Samasta Microfinance operates in Karnataka, Kerala, Tamil Nadu, Goa, Maharashtra, Bihar, Chhattisgarh, West Bengal, Orissa, Gujarat, and Rajasthan.

Products and services offered by Samasta Microfinance

There are several loans offered by this non-banking financial institution, which are designed specifically to meet the needs of individuals from financially weaker communities. Samasta Microfinance has two categories of loans—Group Loans and Individual Loans. Under Group Loans, there are four variants and under Individual loans, there are two variants.

Below is an overview of the various Group Loans:

Loan name Rate of interest
Income Generation Loan (IGL)
  • Annual interest rate - 22.65% (reducing balance)
  • Effective interest rate - 23.73% to 24.75% (fortnightly) and 23.60% to 24.40% (monthly)
Top Up Loan
  • Annual interest rate – 22.65% (reducing balance)
  • Effective interest rate - 24.75% (fortnightly) and 24.40% (monthly)
Education Loan
  • Annual interest rate – 22.65% (reducing balance)
  • Effective interest rate - 24.75% (fortnightly) and 24.40% (monthly)
Consumer Products Loan
  • Annual interest rate – 22.65% (reducing balance)
  • Effective interest rate - 24.75% (fortnightly) and 24.40% (monthly)

Here’s an overview of all the Individual Loans:

Loan name Rate of interest
Dairy Cattle Loan Annual interest rate – 22.65% (reducing balance)
Effective interest rate – 23.60%
Sampark (MSME Loan) Annual interest rate – 22% - 24% (reducing balance)
Effective interest rate – 24.46% to 28.26%

1. Income Generation Loan (IGL)

The purpose of this loan is to provide financing to either grow or set up micro enterprises. The financing from this loan can be directed towards purchasing supplies or inventory, increasing working capital, and buying equipment or machinery. It can also be used as capital for new businesses.

This loan is typically provided to joint liability groups and can be availed in various cycles as well. The Income Generation Loan follows the JLG lending model.

Loan amount
Interest rate
Processing fee
Tenure
Rs.10,000 to Rs.40,000
  • Annual interest rate - 22.65% (reducing balance)
  • Effective interest rate - 23.73% to 24.75% (fortnightly) and 23.60% to 24.40% (monthly)
1%
1 to 2 years

2. Top Up Loan

If you have an existing business loan and require additional financing, you can opt for the Top Up Loan. It’s also dependent on your repayment history. This loan is offered when there may be a risk to your income generation activity.

The Top Up Loan follows the JLG lending model.

Loan amount
Interest rate
Processing fee
Tenure
Rs.10,000 to Rs.15,000
  • Annual interest rate – 22.65% (reducing balance)
  • Effective interest rate - 24.75% (fortnightly) and 24.40% (monthly)
1%
1 year

3. Education Loan

When you need to meet your child’s educational requirements, you can consider the Education Loan by Samasta Microfinance. This loan is based on the JLG lending model.

Loan amount
Interest rate
Processing fee
Tenure
Rs.10,000 to Ra.15,000
  • Annual interest rate – 22.65% (reducing balance)
  • Effective interest rate - 24.75% (fortnightly) and 24.40% (monthly)
1%
1 year

4. Consumer Products Loan

With this loan, you can use the financing to purchase various products like mobile phones, mixer grinder, solar lights, cook stoves, water purifier, and pressure cooker. This loan is also based on the JLG lending model.

Loan amount
Interest rate
Processing fee
Tenure
Rs.2,700 to Rs.7,790
  • Annual interest rate – 22.65% (reducing balance)
  • Effective interest rate - 24.75% (fortnightly) and 24.40% (monthly)
1%
9 months to 1 year

5. Dairy Cattle Loan

This loan falls under the Individual Loan category. It was designed to handle dairy development activities. The financing from this loan can be used to purchase new cattle, which can boost income levels. The Dairy Cattle Loan follows the individual model.

Loan amount
Interest rate
Processing fee
Tenure
Rs.50,000
  • Annual interest rate – 22.65% (reducing balance)
  • Effective interest rate – 23.60%
1%
2 years

6. Sampark (MSME Loan)

This loan falls under the Individual Loan category and is designed to help MSMEs accelerate their growth. The loan provides businesses with credit access, which can be used for various business purposes. Sampark is based on the individual lending model.

Loan amount
Interest rate
Processing fee
Tenure
Rs.1 lakh to Rs.5 lakh
  • Annual interest rate – 22% - 24% (reducing balance)
  • Effective interest rate – 24.46% to 28.26%
2%
2 to 5 years

FAQs

1. What is the repayment frequency for Group Loans and Individual Loans?

The repayment frequency for both these categories of loans differs. When you acquire a Group Loan variant, the repayment is either monthly or fortnightly. Individual loan variants, on the other hand, have to be paid on a monthly basis.

2. Can anyone borrow the Dairy Cattle Loan from Samasta Microfinance?

No. The Dairy Cattle Loan is targeted at women who are involved in dairy activities. This is so they get the opportunity to expand their business and increase their income as well.

3. What are the other features of the Dairy Cattle Loan?

Samasta Microfinance provides insurance coverage with this loan. This helps mitigate any risk for those who borrow the loan.

4. Does Samasta Microfinance offer any other features with their loans?

Yes. Customers who opt for financial products and services from Samasta Microfinance will get support through financial literacy programmes as well as training sessions. This NBFC will also track the loan utilisation and offer guidance whenever necessary.

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