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Micro Finance Loans / Micro Credit

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Micro Loans

Most small businesses and start-ups in India struggle to sustain themselves due to limited access to financing sources. However, with credit options like microfinance loans, small business entrepreneurs can account for such lags with more success. They can now meet their funding requirement with a micro business loan of up to Rs. 45 lakh from Bajaj Finserv that comes with quick approval and minimal paperwork.
 

What is a Micro Business Loan?

Typically, micro loans are a short-term financing option that extends a small quantum of loan to entities like small businesses, self-employed individuals, start-ups and micro-enterprises. The primary objective of micro business funding is to provide working capital to low-income or micro-entrepreneurs with little or no access to formal credit facilities and help them become self-reliant.
Further, this financial solution aims to facilitate socio-economic development, promote self-help groups and start-ups. Additionally, promoting women entrepreneurship is among the topmost priority of micro financing companies.
 

Micro Loans: Features and Benefits

With quick approval and less paperwork, funding for your small business is now convenient and easy. Microfinance loans from Bajaj Finserv can help in fulfilling the short-term needs of your business.

  • High loan quantum at affordable rates

    On meeting the micro loan eligibility, you can avail of up to Rs. 45 lakh at competitive rates of interest. Such a high loan quantum comes in handy for meeting working capital requirements, cost of purchasing and installing high-end machinery.

  • Flexible repayment tenor

    Microfinance loans come with a flexible tenor of up to 84 months. You can pick a tenor that matches your repayment capability.

  • Collateral-free loan

    No collateral

    Microfinance loans from Bajaj Finserv are unsecured and you would not be required to provide any asset as a security to get the loan amount sanctioned.

  • Loan disbursal within 24 hours*

    Prompt disbursal

    With minimal documentation and easy online application, you can get the loan amount in just 24 hours of approval.

  • Flexi loan facility

    With the Flexi facility, you can withdraw money as per your needs from the sanctioned limit and pay interest only on the amount utilised. You can also opt for interest-only EMIs for the initial part of the tenor and reduce your monthly instalment by up to 45%*.

Micro Loan Eligibility Criteria

Availing micro loans for small businesses from Bajaj Finserv is simple and hassle-free. You just need to meet the below mentioned eligibility criteria to secure a micro credit for your business:
 

  • You must be between 25 years and 65 years of age.
  • Your business should have a vintage of at least 3 years.
  • You should have filed income tax returns for your business for at least one year.
  • You should have a Credit Score of 750 or higher.

Documents Required for a Micro Loan

To avail of a micro loan online, you have to submit only a handful of documents. Here is the list of the required documents:
A. Identity proof - KYC documents like Aadhaar card, passport, PAN card, voter ID, driving license or any other documents issued by the government.
B. Address proof – Apart from KYC, documents like electricity bill, telephone bill, ration card, trade license, lease agreement or passport can be used as address proof.
C. Income proof – Copy of income tax returns for at least one year, bank account statement for the last 6 months, audited balance sheet and profit and loss statement for the last 2 years.
D. Business ownership proof - Partnership and private limited companies, self-employed and self-employed non-professionals need to provide business registration certificate, tax records and other proof of address and identity specified by the NBFC at the time of application.
 

Micro Loan Interest Rates and Fees

Bajaj Finserv offers micro enterprise loan at attractive rates of interest. The latest rates of interest and associated charges are presented in the table given below –
 

Type of charge Applicable Charges
Interest rate 18% onwards
Processing charge Up to 2% of sanctioned loan value + taxes
Bounce fee Up to Rs. 3000
Document processing charge Rs. 2000 + taxes
Interest penalty 2% per month
Collection charge (outstation) NA
Document/statement charges You can get a physical copy of a micro enterprise loan document from any branch at Rs. 50 (including taxes)
You can also download e-statement of certificates and documents related to micro finance loans for free from our customer portal – Experia.

Micro Loan FAQs

What is micro-lending?

Micro-lending is the process of extending small or micro loans to entities that do not have access to traditional business loans. The applicants usually need capital to turn their business idea into a fully functioning start-up or to expand an existing business. Unlike business loans, micro credit loans' objective is to provide the required assistance to small and new businesses.

What is a micro credit?

Micro credit is the process of providing small loans to entities that do not have access to a proper source of capital or possess any asset to pledge as collateral. A microcredit programme is launched to support entrepreneurship and tackle the problems related to the lack of funding for start-ups and small businesses.

Which are the best micro financing companies in India for micro loans?

Bajaj Finserv is among the best micro loan companies in India. The microlender provides collateral-free credit to small businesses at simple eligibility and interest rates. This allows entrepreneurs to access funds readily without pledging any assets or going through rigorous documentation. Above all, the NFBC provides micro loan business solutions like a Flexi loan facility that will allow you to withdraw funds multiple times within the pre-sanctioned limit. Under the said facility, you have to pay interest on the amount you use.

How to get a micro loan?

One can apply for a micro loan online by simply clicking on Apply Now. You would be required to fill the micro loan application form on the website with the required information. Subsequently, you have to submit an essential set of documents.

Post submission of your documents, the representative will get in touch with you to take you through the loan offer. Once verification of documents is completed, you will get funds in just 24 hours of approval.

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