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Swadhaar currently has three loan products: an Individual Loan with a Joint Liability (JL), a Top up Loan to existing JL clients and an Individual Business Loan (IBL). All products come with credit-linked life insurance.
Swadhaar’s Individual Loan with Joint Liability (JL)
Swadhaar’s Individual Loan with a Joint Liability (JL) is intended for economically active women who are between 18 and 59 years of age and have formed a group of minimum three women from the same socio economic background. The group lending structure enables group members to cross-guarantee one another’s loans.
Swadhaar’s target JL Loan clients include women who work on a commission basis, as salaried workers or in home-based enterprises, such as tailoring, beadwork or imitation jewellery. Loan amounts range from INR 6,000 to INR 34,000 for a period of 12 to 24 months.
Interest Rate
26% p.a. on a declining principal balance (Monthly interest rate – flat -1.22%, APR – 27.97%)
Fees
Loan Processing Fee: 1% of loan amount (exclusive of GoI service tax @10.3%)
Top Up Loan (TG):
Top up Loan is a group loan product that is designed to provide supplementary finance to existing JL clients to meet their mid-term cash flow requirements. This product is offered from 2nd cycle onwards to clients with good repayment behaviour. Top up Loan amounts range from INR 2,000 to INR 5,000 with 12 Months loan tenure.
Interest Rate
26% p.a. on a declining principal balance (Monthly interest rate – flat -1.22%, APR – 27.97%)
Fees
Loan Processing Fee: 1% of loan amount (exclusive of GoI service tax @10.3%)
Swadhaar’s Individual Business Loan (IBL)
Swadhaar’s Individual Business Loan (IBL) is an unsecured working capital loan intended for male and female micro entrepreneurs with businesses including food stalls, small general stores or “tiffin” services for office goers. Loans range from INR 8,000 to INR 50,000 and may be used for such purposes as income generation or business expansion.
Interest Rate
36% p.a. on a declining principal balance
Fees
Loan Processing Fee: 2 – 3% of loan amount (exclusive of GoI service tax @10.3%)
Collection Fee: INR 10 per month (if applicable)
Swadhaar’s Credit-linked Life Insurance
Both Swadhaar’s JL Loan and IBL clients have the benefit of credit-linked life insurance, delivered currently through Bajaj Allianz Life Insurance Company Limited. The sum assured is equal to the loan amount. In the event that a client suffers a natural or accidental death over the course of his/her loan term, his/her nominee is released from the burden of repayment of loans and is also entitled to receive the principal amount already repaid by the client. As an added benefit, spouse insurance is also being offered to both JL Loan and IBL clients.
Other Services
Financial education and savings facilitation conducted by Swadhaar FinAccess (SFA), a non-profit company established by the promoters of Swadhaar FinServe, are also available to Swadhaar FinServe’s clients. For more information on SFA’s products, please click here.
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