Ujjivan Financial Services

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 Financial Services

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.

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.

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.

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

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

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.

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.

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.

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.

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, Voter's 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.

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