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.
The three main types of Micro finance is Micro Loans, Micro savings, and Micro insurance. Let’s understand them further-
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.
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:
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:
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.
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.
Micro financing thus helps small businesses to have control over their working capital & cash-flow, thus avoiding loans taken from friends, family.
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