Purpose : The Enterprise Loan (EL) is intended to fund small businesses for expansion, working capital infusion, purchase new equipment or business assets and repay existing loans at higher rate of interest.
These loans are provided to households that have credit experience in the past and have exposure to banking facilities. These households may be existing SHG and/or JLG members of Arriba or of any other regulated entity/ financial institutions.
Loan Sizes : Minimum ₹ 1,00,000 – Maximum ₹ 3,00,000 (In multiples of ₹ 50,000)
Loan Tenure : 12 / 18 / 24 / 36 months
Repayment Frequency : Fortnightly / Monthly as desired by the borrower.
Rate of Interest (Reducing basis) : 24% per annum
Loan Processing Fees : 1% – 2.5% of loan amount + applicable GST
- 1% for 12 months tenure
- 1.5% for 18 months tenure
- 2% for 24 months tenure
- 2.5% for 36 months tenure
Collateral : No collateral required
Prepayment Charges : No prepayment charges
Penalty on Delayed Payments : No fees or penalty for delayed payment, but interest will be charged for the delayed period.
Loan Cover Insurance (For Loans upto 2 lakhs & 2 years tenure) : For borrower and co-borrower – (i.e Spouse/Children) at the rate of ₹9.02 per annum per ₹ 1,000 and for only the borrower ₹4.51 per annum per ₹1,000. In case the loan tenure is of more than 12 months then the premium will be double.
Loan Cover Insurance (For Loans above 2 years tenure) : The insurance premium will be calculated on the basis of age of borrower and co-borrower. This is a reducing cover insurance premium.