Product Information

Entrepreneurship

Loan Product Name

PRERONA

Brief Description

This loan product is exclusively designed for the poor women in underserved areas who engaged in self-employment and small income generating activities but do not have enough own capital to run the activities.

Target Clients

• The women who are engaged in income generating activities.
• In rural areas, the women who are engaged as small farmer, allied agriculture activities, food processing, petty trading etc.

• In semi and peri urban areas, the women who are engaged in more diverse activities like shopkeepers, service providers, street vendors, artisans etc.

Criteria of a client

• The above-mentioned women who engaged in small income activities.
• Between 18-58 years old
• Should have a income generating activity
• Annual Household income should not be more than ₹1,25,000/- for rural areas & that should not be more than ₹2,00,000/- for semi-urban and  urban areas.
• Not have outstanding account with more than one MFI.
• Total indebtedness should not exceed ₹1,25,000/-

Purpose

• Farm

1. Agriculture – Paddy, Wheat, Jute, Vegetable cultivation
2. Agriculture Allied – Dairy, Poultry, Fishery, Duckery, Piggery, goatery etc.

• Non-Farm

1. Small business – Grocery, Stationery, Readymade Garments, Tea stall, Food stall, Electronic & Electrical, Mobile shop etc.
2. Small Transport – Van, Rickshaw etc.
3. Service – Laundry, Saloon, Cobbler, bookbinding repairing shop etc.

Lending Methodology

Individual (through Group)

Loan Ceiling

Minimum

₹ 5,000/-

Maximum

₹ 40,000/-

Subsequent increase amount

Maximum ₹ 20,000/- from previous loan amount (depends on evaluation marks)

Tenure

14 months

Interest & Fees

Rate of Interest

25.50% ( Effective from 01.05.2022)

Processing Fees

1% on loan amount

Insurance Fees

1.008 % on loan amount (Borrower+ CO Borrower)

GST

18% on processing fees

Mode of Repayment

Weekly/Fortnightly/monthly as per borrower choice