Micro Lending Loan

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Micro Lending Loan

Micro lending loan or micro finance loans is defined as all collateral-free loans, irrespective of end use and mode of application/ processing/ disbursal (either through physical or digital channels), provided to households having income up to Rs. 3,00,000. For this purpose, the household shall mean an individual family unit, i.e., husband, wife and their unmarried children.


Calculate your Loan EMI instantly


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Loan EMI

₹24,959

Total Interest Payable

₹34,90,279

Total Payment
(Principal + Interest)

₹59,90,279


  • Loan up to Rs 1 lakh

    Member are eligible to get maximum of Rs. 1,00,000/- loan depending upon loan eligibility and cycle. Loans are given only for income generating activities such as poultry, fisheries, animal husbandry, vegetable vendor, papad, small cottage industries etc.

  • Flexible repayment tenure

    Member has the option to pay the EMI on weekly, fortnightly or monthly basis. Although monthly emi is the most acceptable mode of repayment.

  • No collateral

    Member can avail collateral free loan under Micro Lending loan of HDBFS. It is based on JLG model where social collateral is required to avail loan from the organization.

  • Doorstep onboarding and collection process

    All the activities in HDBFS Micro Lending product is done at member house of village except disbursement

  • Insurance coverage

    Members and her husband are given insurance coverage till the loan tenure. Sum insured is equal to the loan amount disbursed to the customer.

  • Disbursement in saving account in 3 days

    The whole process of customer onboarding till disbursement in HDBFS take 3 days which is among the best in the industry.

Rule 1: Loans to customer only in group

A group is a set of four-eight individual women from similar economic backgrounds or occupations, who know and trust each other and come together to become customers of HDB Financial Services. Apart from group criteria and individual should have below mentioned eligibility.

Rule 2 : Economically active Poor Women

  • Salaried
  • Self Employed
  • Daily rate workers
  • Housewives

Rule 3: Age 18-55 Years All members should be between 18 to 55 years of age

Rule 4: Household income of the customer should not be more than 3 lakh rupees. Monthly loan obligation of the household should not be more than 50% of the monthly household income.
Household means an individual family unit i.e husband, wife and their unmarried children.

Rule 5: Members in a group should not be Blood Relatives.

  • Mother - Daughter
  • Mother in law - Daughter in law
  • Sisters
  • Sister in law
  • Co- sisters (brother's wives)

Rule 6: Proximity of group members

  • The group members should be residing within 300-500 meters of each other.
  • Customers should reside in the same area for more than 5 years
  • Should know each other for at least 2-3 years

GROUP HAS TO UNDERSTAND THE CONCEPT OF JLG

  • Group unity means solidarity and commitment to each other and the group at all times to HDB Financial Service
  • Agrees to pay the EMI of other member of the group if she default or is unable to pay
  • Help HDBFS to track the customer in case of migration or willful default
  • In the case of temporary repayment problem of a member like illness in the family, late payment of salary etc, the other group members must lend to this person to overcome the problem.

Document Required (Customer)

  • Identity Proof - Voter Id 
  • Current Residential proof - Voter Id or Aadhar card - With Aadhar masking feature
  • Bank Passbook
  • Photographs- Recent passport size 2 photographs

Document Required (Husband)

Any one of the following

  • Voter Id
  • Driving (not expired)
  • Pan card
  • Passport (not expired)

Fair Practice Code - HDBFS

Loan Process

  1. The process of applying for a loan will not be cumbersome
  2. The rate of interest charged will be in adherence with the RBI guidelines
  3. Only relevant documents, in accordance with KYC norms set by RBI, will be collected from customers
  4. The RBI guidelines for preventing over-indebtedness among customers will be followed
  5. All loan applications will be verified by field staff and go through necessary credit bureau checks to ensure the repayment capacity of the borrowers
  6. The moratorium between grant of loan and due date of repayment of first installment will be at least equal to repayment frequency
  7. No late fee will be charged on late payment.
  8. No penalty will be charged on prepayment. - Already covered here also
  9. No security deposit or margin will be collected

Disbursement

  1. The disbursement time will be intimated to the customers in advance
  2. All disbursement of loans will be done at a central location
  3. There will be more than one individual involved in the process of disbursement

Collection

  1. Collection will happen in a centralized location
  2. Collection will be done by employees of HDBFS and collection will not be outsourced to recovery agents
  3. The field staff will adhere to the Employee Code of Conduct (ECOC) and the Collection Code of Conduct (CCOC).
  4. Field staff shall be trained to inculcate appropriate behavior towards customers.
  5. Collection by the field staff will not be done using any abusive or coercive methods.
  6. Customers will be informed about registering complaints on the customer care number
  7. HDBFS shall be accountable for inappropriate behavior by its employees or employees of the outsourced agency.

Take the next step & manage your immediate financial needs now.

How to apply for Micro Lending Loans from HDB Financial Services Ltd
  • Visit our nearest branch and enquire about the Loan in a group of minimum 4 customer or staff can contact interested customer after Projection meeting at their village or area.
  • Confirm time for QDE and DDE at own house
  • Confirm time for CGT 1 and CGT 2 if have valid KYC, mobile no and Credit Bureau report.
  • Confirm time for GRT by Branch in charge.
  • Sanction of loan if data entry and documentation is correct.
  • Disbursement at Branch location in member Saving account only.
  • Branch inform about the first EMI date on the day of Disbursement.

*HDB Financial Services Ltd may use the services of various agents on its behalf for the purpose of sales and marketing for HDB's products and services

Micro Lending FAQs

Microfinance refers to provision of providing basic financial services such as micro credit, micro insurance, saving accounts to low income individual or groups who are typically excluded from traditionally banking.
Any women having age 18-55 with valid KYC and mobile number, married, divorce or widow can apply for Micro Lending loan
Abiding by the motto of #Reimagining Opportunities, we value your financial requirements & quick Micro Lending loan with the following advantages
  • Loan within 3 days
  • Doorstep customer service
  • Opportunities to get multiple other product under single umbrella
  • Less documentation
You can apply maximum of 30k in first cycle, 40k in second cycle, 50k in third cycle and 60k in fourth cycle
For First & Second cycle the loan tenure is 18 month, for third cycle onward its 24 months. However for top up loan the loan tenure can be 6-12 months.
Rate of interest applicable to all JLG loan is upto 26% (diminishing), apart from that 1.5 % processing fee and 1% insurance fee covering both husband and wife and (equals to loan amount) is rate charged from the customer.
No you can only express your willingness to take loan through online portal. Once enquiry received, Branch will contact the person to initiate the process of customer onboarding provided other criteria of group formation is met.
No-HDBFS does not charges any foreclosure or part payment charges in Mirco Lending loans
Customer has the flexibility to pay loan weekly, fortnightly, monthly as per their convenience.
Yes, please check the branch list to check the nearest location
Micro Lending loans are only for women focusing on ways to enhance the financial condition through entrepreneurship