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What is Micro Finance?

Micro Finance is how credit, insurance, money transfers, and access to savings bank accounts are made available to small business owners and entrepreneurs in the underdeveloped part of the country. In India, it’s observed that the major recipients of microfinance are those who do not have access to traditional financial resources like a business loan. The interest rate on micro loans is higher than on traditional personal loans.

Types of Microfinance

The three main types of Micro finance is Micro Loans, Micro savings, and Micro insurance. Let’s understand them further-

  • Micro Loans - Micro Loans are of importance here. They are provided with no collateral mainly for people from rural areas who require small amounts 
  • Micro Savings - Micro savings allow small businessmen to operate their savings account with no minimum balance. The advantage is that it will create a habit among the users to save for the future along with bringing in some financial discipline.
  • Micro Insurance - Micro insurance is a type of coverage provided to small businesses that take a microloan. These insurance plans tend to have a lower premium than that of a traditional insurance policy.
  • Micro LAP - At Fullerton India, we also provide loans against property (LAP) to individuals as well as MSMEs at highly competitive rates. These loans are secured against property and have tenures ranging up to 15 years. Individuals can use these loans to finance large personal expenses. Small business owners who need a larger loan and a tenure longer than 5 years can avail this loan to meet their business needs. 

The importance of a Micro Loan can be understood as it provides individuals and small businesses an option for securing finance where traditional forms of finance aren’t available. This instills a sense of financial stability so that their aspiration of creation of assets and protection against risk is fulfilled. 

Here at Fullerton India, we understand the importance and urgency for MSME loans to help small businesses or newly established businesses, hence we have made an effort to provide not only a Small Personal Loan but also a Growing Enterprise Loan at very attractive interest rates.

Eligibility and Documentation for Micro Loan

Micro loans in Fullerton India includes two vital categories of finance. The Solidarity Group Loan offered by Fullerton India is available  to rural women as a means to empower them to take on an entrepreneurial initiative. Fullerton India ensures that eligible women from rural India  can get their business ideas off the ground without having to worry about funding. The solidarity group loan is offered to a group of women collectively. 

 The other category of microfinance loan by Fullerton India includes the Growing Enterprise Loan which can be availed by eligible individuals living in rural areas to meet their short term goals. 

While the Solidarity Group Loan offers a loan amount between Rs 23,000 and Rs 75,000; the Growing Enterprise Loan starts from Rs 50,000 and can be availed to a maximum of Rs 2 lakhs. Both types of micro loans are available at competitive interest rates. 

You can determine the micro loan eligibility by checking out the outlined criteria on the Fullerton India website. The eligibility criteria for microfinance loan include: 

  • The applicant must be at least 21 years at the time of loan application and not over 60 years at the time of loan maturity. The applicant should have been a resident  of the particular location for a minimum period of two years
  • The applicant must have a valid mobile number

Please note that these are just a few basic criteria. Eligibility will be determined based on Fullerton India’s policy at the time of loan application.

There are some micro finance documents that need to be submitted. The documents required For Microfinance Loan include the following: 

  • Two photographs of the prospective borrower that is not older than 6 months
  • Identity proof of applicant and co-applicant: PAN card, Form 60
  • Address proof of applicant and co-applicant: - Aadhaar card, driving license, passport, voter’s ID, Utility bills, lease agreement, trade license, ration card, etc.
  • Income proof through bank statements for the last 6 months along with Form 16, payslips, Income Tax or GST Returns, financial statements
  • Security with a post dated cheque for the loan amount of Rs 1 lakh applicable for Growing Enterprise Loans
  • House ownership proof required for Solidarity Group Loan

Please note that the above list is indicative. Actual list of documents will depend on Fullerton India’s policy and the applicant’s profile at the time of loan application. 

If you are not from a rural location and reside in an Indian city or town, you may not be eligible for our microfinance loans.

On the other hand, Fullerton India offers unsecured business loans upto INR 50 lakhs* to eligible applicants residing in Indian cities and towns at attractive interest rates. Thus, if you are self-employed and/or own a small business and need a loan to manage business expenses or fund your expansion plans, you can apply for a small business loan from Fullerton India. To know more, please visit our page. 

*Terms and Conditions apply.

Small Personal Loan

A Small Personal Loan also called an instant cash loan is an unsecured loan that could be used for personal financial needs. The interest rate on this starts at a very competitive 11.99%* per annum and is a very simple and quick way to get cash in an emergency. Also, it has a very flexible repayment structure, thus allowing you to repay comfortably. To apply for this loan, please click on the “Apply now” button on this page, or visit your nearest Fullerton India branch.

Growing Enterprise Loan

  1. To help you meet the needs of your growing business, we provide small business loans upto INR 50 lakhs, depending on your eligibility
  2. Our documentation process is simple and straightforward
  3. After successful verification checks and loan approval, the funds are disbursed to your account within 72 hours*
  4. You can repay the loan through easy EMIs by choosing flexible tenure options between 12 to 60 months
  5. To repay your loans, there are several options offered such as
    • Pay online via our website through UPI, debit cards or net banking
    • Pay online via the Service Connect portal on the website or through the m-Connect app
    • Register for ECS / auto-debit facility
    • Provide post dated cheques at your nearest branch
  6. This product is available at select branches. To apply for this loan, please contact your nearest Fullerton India branch.

Micro financing thus helps small businesses to have control over their working capital & cash-flow, thus avoiding loans taken from friends, family.

Check Your Eligibility  

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