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Ujjivan Small Finance Bank

Ujjivan Small Finance Bank successfully established its presence in the country by opening offices in 24 states across the country in the year 2017. The lender offers a number of loans as part of its portfolio such as individual loans, group loans, MSE business loans, a personal loan, etc. Individuals looking for financing can, thus, compare the various loan options offered by the lender and opt for a loan that is well-suited to their financial requirements and repayment ability.

Products and Services Offered by Ujjivan Small Finance Bank

Ujjivan Small Finance Bank has been customer-centric ever since inception and has a reputation for the consistent development of specially tailored products and services that help in addressing their customers’ financial needs. Following are the various loan products that can be availed from the lender:

1. Group Loans - Microbanking

Features:

  • The various loans that are offered by the lender under this category include the Business Loans, Family Loan, Agriculture and Allied Loan, Education Core Loan, Emergency Loan, Business Top-Up Loan, Education Loan (Top Up), and the Loyalty Loan.
  • The loans listed under this category are purpose-based loans that are offered at moderate rates.
  • The interest is calculated on a reducing balance method.
Interest Rate
Loan Amount
Tenure
22% p.a.
Rs.2,000 to Rs.60,000
1 year/1.5 years/2 years

2. Individual Loans - Microbanking

Features:

  • Ujjivan Small Finance Bank offers individual loans such as the Individual Business Loan, Individual Livestock Loan, Individual Agriculture Loan, Home Improvement Loan, Open Market Livestock Loan, and the Individual Bazaar Loan.
  • These loans are offered to individual customers without the requirement for a group guarantee.
  • No pre-closure fee is levied if a customer pre-closes their loan after paying 80% of their loan amount.
Interest Rate
Loan Amount
Tenure
23.25% p.a. (24% p.a. for the Individual Bazaar Loan)
Rs.51,000 to Rs.2 lakh; Rs.1 lakh for the Individual Agriculture Loan
6 months to 36 months

3. Unsecured Business Loan

Features:

  • This loan can be taken by micro and small enterprises that are in need of funds.
  • Enterprises that wish to avail this loan should have the following yearly sales turnover:
  • Manufacturing enterprises: Rs.18 lakh and above
  • Trading enterprises: Rs.20 lakh and above
  • Service-oriented enterprises: Rs.15 lakh and above
  • Borrowers can make pre-payments towards the loan.
Interest Rate
Loan Amount
Tenure
24% p.a.
Rs.2 lakh to Rs.3 lakh
1 year to 2 years

4. Unsecured Enterprise Loans

Features:

  • This loan can be availed by registered small and micro enterprises for their working capital needs, debt consolidation, and for capital expenditure.
  • Loans can be pre-closed by the borrower before the completion of the actual loan tenure.
  • To avail this loan, enterprises should meet the following yearly sales turnover:
  • Manufacturing enterprises: Rs.35 lakh and above
  • Service-oriented enterprises: Rs.20 lakh and above
  • Trading enterprises: Rs.40 lakh and above
Interest Rate
Loan Amount
Tenure
21% p.a. to 23% p.a.
Rs.3 lakh to Rs.7,50,000 lakh
1 year to 3 years

5. Secured Enterprise Loans

Features:

  • Secured Enterprise Loans can be availed by individuals if they wish to consolidate their various short-term debts, for the purchase of equipment, to meet working capital needs, etc.
  • This loan can only be availed by registered small and micro enterprises that have the below-mentioned yearly sales turnover:
  • Service-oriented enterprises: Rs.20 lakh and above
  • Trading enterprises: Rs.40 lakh and above
  • Manufacturing enterprises: Rs.35 lakh and above
Interest Rate
Loan Amount
Tenure
14% p.a. to 17% p.a.
Rs.10 lakh to Rs.50 lakh
3 years to 10 years

6. Overdraft Facility for Micro and Small Enterprises

Features:

  • MSE businesses that have a yearly turnover of at least Rs.50 lakh can avail Ujjivan Small Finance Bank’s overdraft facility.
  • A key benefit of the overdraft facility extended by the lender is that borrowers are only required to pay interest on the loan amount that they utilise.
  • The lender also gives applicants the option to combine their MSE Loan with the overdraft facility.
  • The loan application is processed by the lender in a timely manner.
  • Priority services are offered at the lender’s bank branches.
Interest Rate
Loan Amount
Tenure
13% p.a. to 16% p.a.
Rs.11 lakh to Rs.50 lakh
Overdraft limit is annually renewable

7. Personal Loan

Features:

  • Prospective borrowers can apply for Ujjivan Small Finance Bank’s personal loan online.
  • The lender charges a reasonable interest rate, which ensures that borrowers are not financially burdened.
  • Minimum documentation/paperwork is required to avail this loan.
  • Once the applicant submits the application form and the required documents to the lender, the lender will approve the loan application within 3 days.
  • In addition to the above-mentioned benefits, the lender offers a loan protection insurance plan to individuals to avail the personal loan.
  • Salaried professionals who are between 22 years and 58 years of age can apply for this loan.
  • To be eligible to apply for a personal loan from Ujjivan Small Finance Bank, the applicant’s net monthly salary should be equal to or more than the minimum wage limit that is specified by the state.
Interest Rate
Loan Amount
Tenure
As per the lender’s terms and conditions
Rs.50,000 to Rs.15 lakh
1 year to 5 years

8. Ujjivan Bank Agri Group Loan

Features:

  • The Agri Group Loan from Ujjivan Small Finance Bank is a purpose-based loan.
  • This loan can be taken to financially cover agricultural activities such as equipment purchase, sericulture, and cattle maintenance or purchase.
  • The lender provides timely credit and offers a simplified application process.
Interest Rate
Loan Amount
Tenure
22% p.a.
Rs.30,000 to Rs.60,000
Up to 24 months

9. Ujjivan Bank Kisan Suvidha Loan

Features:

  • The Kisan Suvidha Loan is a purpose-based loan that is issued by Ujjivan Small Finance Bank to farmers if they require funds for agriculture or other allied activities.
  • The lender offers flexi repayment options.
  • The activities that are covered under this loan include sericulture, fishery, dairy, vegetable farm maintenance, mushroom farming, sheep rearing, floriculture, apiculture, coconut farm maintenance, etc.
Interest Rate
Loan Amount
Tenure
23.25% p.a.
Rs.60,000 to Rs.2 lakh
Up to 24 months

Documentation Required to Avail a Loan from Ujjivan Small Finance Bank

Listed below are certain documents that you may have to submit to the lender with your loan application form:

  • Proof of address: Applicants can submit their Aadhaar card, passport, voters ID, or driver’s licence
  • Proof of income
  • Company ID card
  • Bank statements
  • Passport-size photographs
  • PAN card

Fees and Charges

  • Processing fee: 1% - 2% of the loan amount
  • Credit bureau charges: Rs.10 – Rs.20
  • Stamp duty: As per the state act
  • Late payment charges: Rs.100
  • Loan pre-closure charges: 2% - 5% of the outstanding principal
  • Interest overdue charges: Up to 3% interest on the overdue interest amount
  • Bounce charges: Rs.250

*Note: The charges levied will vary from scheme to scheme.

Why You Should Choose Ujjivan Small Finance Bank?

Here are a few reasons why you should consider availing a loan from Ujjivan Small Finance Bank:

  • Varied Portfolio: The lender has a varied product portfolio and offers loans catered towards various segments of society. The lender offers a personal loan, an agricultural loan, an MSE business loan, etc., as part of its product suite. Thus, you can assess your financial requirements and opt for a suitable loan.
  • Reasonable Interest Rate: The lender charges an affordable rate of interest that starts at 13% p.a.
  • Low Processing Fee: A low processing fee is charged by the lender to keep the overall cost of the loan low.
  • Online Application: For certain loans, the lender allows individuals to apply for the loan online.
  • Hassle-Free Documentation: The lender requests for minimal documents with the loan application form.

Ujjivan Small Finance Bank is one of the leading microfinance lenders in the country. You can avail a loan from the lender in a hassle-free manner. Before applying for a loan, make sure that you are well-versed with the terms and conditions of the loan and the fees levied by the lender.

FAQs

Is the processing fee paid on a monthly basis as part of the EMI?

No, the processing fee is a one-time fee that is levied by the lender. In most cases, the processing fee is deducted from the loan amount before it is disbursed to your account.

I am a self-employed individual. Can I apply for Ujjivan Small Finance Bank’s personal loan?

No, the lender specifies that only salaried professionals who earn a steady monthly income can apply for the personal loan.

I am considering applying for a personal loan from Ujjivan Small Finance Bank through the lender’s official website. What is the process to apply for the loan online?

To apply for a personal loan online, you will need to visit the lender’s official website. Post this, you will need to click on the product that you wish to apply for, which in this case is ‘Personal Loan’. Once you are on the Personal Loan webpage you can click on ‘Apply Now’. You will need to provide the required information to the lender through the online application form and upload the necessary documents online. Once this is done, your application will be verified and assessed, after which it will be approved. Once your application is approved, the loan amount will be disbursed to your account.

Am I required to submit any collateral to the lender to avail a loan?

This condition will vary based on the type of loan that you apply for. For example, for Ujjivan Small Finance Bank’s personal loan, applicants are not required to submit any collateral or security. It is advisable to read through the terms and conditions of the loan.

Am I required to be a customer of Ujjivan Small Finance Bank to avail a loan from the lender?

Not necessarily. You can apply for a loan even if you aren’t already a customer.

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A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.

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