This loan is designed for economically active low-income households who have an aspiration to improve their economic well-being. The loan is offered in a group mechanism.
This is the most dominant loan product helping in driving financial inclusion of low-income clients, predominantly women. Option of weekly repayments ensure that the clients can save a little from their daily cash-flows and do not face repayment stress. Loans are used for cash flow smoothening, predominantly for productive purposes.
The interest rates for this product is 1.25 %. The effective rate would vary slightly depending upon the tenor and frequency of repayment chosen by the borrower.