Micro Loans
Micro loans are short-term group loans with smaller loan amounts that can be availed by self-employed, start-ups, micro-enterprises, small businesses & individuals with low capital requirements. These are designed for our customers to provide them with solutions to meet diverse needs & gain financial independence.
AU Small Finance Bank provides a varied range of loan products to the micro banking customers falling under Unbanked/Semi-unbanked geography to meet their long- and short-term credit needs with an intent of loan utilization for income generating purpose.
Group Loans
Group loans is a unique financial service for low-income groups. To obtain such a loan it is necessary to form a group of two or more individuals (female borrowers only) who can run businesses that can earn income & have been active. Individuals who are willing to take group guarantee for each other can form groups to avail the loan.
These are loans given under the Joint Liability Group (JLG) model. Group loans are offered for using loan/credit for income generating activities to improve their livelihood. AU Small Finance Bank offers Group loans at affordable interest rate to its borrowers. These are collateral free loans offered to micro banking customers residing in rural pocket of Bank’s Operating geography.
Product Features
Product Features | |
Features | Attributes |
Loan Amount | Minimum Loan Ticket size is INR 32,000/- |
Maximum Loan Ticket Size is INR 80,000/- | |
Age Group | Between 18 to 59 years on the day of onboarding |
Loan Tenure | 24 months |
Security | Group guarantee |
Processing Fee* | 1.5% Processing Fee for Loan Products with Ticket size > INR 50,000/- |
No processing Fee for loan Products with Ticket size <= INR 50,000/- | |
*GST applicable on Processing Fee | |
Rate of Interest* | Minimum ROI is 25.5% p.a. |
Maximum ROI is 26% p.a. |
Notes* |
Rates effective from 1st April 2025 |
Loan amount is applicable for FY 2026 |
Product features are subject to changes from time to time as stipulated by bank through its communication channels |
Eligibility Criteria
Applicants must meet the following requirements to be eligible* for the loan:
- Annual Household Income upto to INR 3 Lakh, where household shall mean an individual family unit, i.e., husband, wife, and their unmarried children. (Referring RBI master Direction dated 14th March’22)
- Female borrowers only as stipulated in Bank’s Group lending policy.
- Loans will be provided only for income generating activities.
- Should not have an adverse credit record.
- Should be willing to take up group guarantee.
- Other Terms and Conditions for Group loans are applicable*.
Note*
Bank reserve rights to reject the loan application which are not falling under Bank’s Group Lending policy and specified Terms & conditions and follows environmental, social, and ethical governance (ESG) framework to filter out negative profiles.
KYC Documents
Applicants must produce the below KYC documents at the time of onboarding for authentication.
.
- Residence Proof: Any of the valid KYC documents
- In case if PAN card is not available, applicant must provide Form 60.
For further information, please contact your nearest Bank branch or call 1800 313 313.
| Primary KYC ID | Secondary KYC ID |
| 1. Aadhaar | Anyone of below KYCs-
|
