MFI Loans to individuals and members of SHG &JLG
KVB offers collateral free microfinance to Individual/s belonging to low income household having annual 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.
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 | 13.50% |
| Maximum | 26% |
| Average | 21.00% |
KVB may be held accountable for conduct of its employees or employees of the outsourced agency.KVB shall strive to provide fair and timely redressal to any such grievances raised by borrowers.
The loans availed through this scheme is
- Flexible towards the poor.
- Sensitive towards the people's situation.
- Responsive towards informal credit system.
- The group should be in active existence for at least a period of six months.
- Have successfully undertaken savings and credit operations from its own resources.
- Maintain proper accounts / records.
- Work democratically wherein all the members feel that they have a say should be evident.
- Be formed to reflect a genuine need to help each other and work together, and Branch Manager should be convinced that the group has not come into existence only for the sake of participation in the project and availing benefits thereunder.
- Have members preferably with homogeneous background and interests.
- To meet the credit needs of the poor by combining flexibility, sensitivity and responsiveness of the informal credit system with the strength of technical and administrative capabilities and financial resources of the formal credit institutions.
- To build mutual trust and confidence between the bankers and the rural poor.
- To encourage banking activity both on thrift as well as credit side in a segment of the population that the formal financial institutions usually find it difficult to cover.
