Microfinance Loan
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Microfinance Loans to individuals and members of Self Help Groups (SHGs) & Joint Liability Groups (JLGs)
Overview
IDBI Bank offers collateral free microfinance to Individual/s belonging to low income household having annul income upto Rs.3,00,000. It is designed not only to support entrepreneurship and elevate poverty, but also to empower women and uplift communities by extending financial services.
Eligibility
Individual/s and members of Joint Liability Group having household annual income upto Rs.3,00,000.
Loan Amount
Minimum: Rs.0.10 Lakh.
Maximum: Rs.1.50 Lakh*
*Maximum loan will be restricted to 50% monthly repayment obligation of household as a percentage of monthly household income.
Term Loan
Minimum: 12 months
Maximum: 60 months
Cash Credit
Three years with annual review.
Micro Loan for Self Help Groups (SHGs) & Joint Liability Groups (JLGs)
Overview
IDBI Bank extends financial assistance through SHGs/JLGs in the form of small loans (micro loans) to borrowers. It is designed to support entrepreneurship and to empower women by extending financial services.
Eligibility
Members of SHGs/JLGs and SHGs, JLGs for consumption and income generating activities.
Consumption Loan
Loan not exceeding Rs.2.00 Lakh to SHGs/JLGs for activities other than agriculture or MSME viz. loan for meeting social needs, construction or repairing of house, construction of toilets or any viable common activity started by SHGs.
Loan Amount
| Group Type | Minimum | Maximum |
|---|---|---|
| SHGs | Min. 6 times of existing corpus or min. of Rs.1.5 lakh, whichever is higher | Rs.20 lakh |
| JLGs | Rs.0.10 lakh | Loan to group will be Rs.2 lakh per member or Rs.10 lakh whichever is lower |
*maximum loan to SHGs/JLGs sourced through Corporate BCBF route is Rs.25 lakh.
Repayment Period
i) Term Loan
| Group Type | Minimum | Maximum |
|---|---|---|
| SHGs | 24 months | 84 month |
| JLGs | 12 months | 84 months |
ii) For CC : 5 years with annual review
You can now Download Application Form
Fair Practice Codes (FPC)
Rate of Interest for Microfinance Loans
A microfinance loan is defined as a collateral-free loan, irrespective of end use and mode of application/processing/disbursal (either through physical or digital channels), provided to a household having annual household income up to Rs.3,00,000. The household shall mean an individual family unit, i.e., husband, wife and their unmarried children.
| Rate of Interest for Microfinance Loans | |
|---|---|
| Minimum | 15.45% |
| Maximum | 26% |
| Average | 20.72% |