The micro finance solutions provided by Utkarsh predominantly concentrate on the northern and central regions of the country. Started in 2009 in the Varanasi district, Utkarsh Microfinance has quickly spread to 84 other districts and having a presence in many states such as Maharashtra, Bihar, Madhya Pradesh, Himachal Pradesh and Delhi. Their mission is to provide financial solutions and products that bring about the improvement of rural and backward classes through a sustainable and customer centric approach.
The Utkarsh Microfinance loans consist of 4 packages namely Samridhi Secured, Samridhi Unsecured, Grihsudhar Secured and Grihsudhar Unsecured. Their purposes or intended uses, features and eligibility criteria are described below
The purpose of the Samridhi Secured and Samridhi Unsecured micro enterprise loans is predominantly for acquiring assets. They can also be used for all business related expenses arising from renovation of business structure and can also be used as capital required to carry out operations.
The purpose of the Grihsudhar Secured and Grihsudhar Unsecured loans are predominantly for expenses related or arising from house maintenance and improvement. This includes renovating or extending built up area of the house and for upkeep and maintenance related expenses of the house.
The loan amount for the Utkarsh Samridhi Secured loan is higher than the unsecured version with loan amounts varying from Rs 1 Lakh to Rs 3 lakh while the Samridhi unsecured loan has amounts varying from Rs 50,000 to Rs 1 lakh. The loan tenure is also higher for the Samridhi secure with tenure options ranging from 24 months to 48 months with a 26% p.a. reducing interest being charged. The Samridhi unsecured loan has tenure option varying from 12 months to 30 months with a 28% p.a. reducing interest charge. Both Samridhi loans have 2% of the loan amount charged as processing fee and credit life insurance premium of 1% of the loan amount. Repayment for both loans are monthly
The Grihsudhar Secured loan and unsecured loans also have similar features. The Grihsudhar unsecured loans offer higher loan amounts ranging from Rs 1 Lakh to Rs 3 Lakh while the loan amounts offered for the unsecured Grihsudhar loan ranges from Rs 50,000 to Rs 1 Lakh. The Grihsudhar secured loan has tenure options ranging from 24 to 48 months and charges a reducing interest of 26% p.a. The Grihsudhar unsecured loan has tenure options ranging from 12 months to 30 months with a reducing interest of 28% p.a. Both Grihsudhar loans charge a processing fee of 2% of the loan amount and 1% of the loan amount charged as credit life insurance premium.