Joint Liability Groups (JLG) Loans
Loans are offered to individuals within groups of upto 5 women members who co-guarantee each other for the proper repayment of loans, and attend weekly/bi-weekly/monthly meetings (called Clients’ Group meeting) for repayment of pre-calculated instalments.
JLG loans are offered to clients for the purpose of income generation, which includes loans for cattle, agriculture, purchase of material, dairy, starting of a small scale business etc. Altura conducts trainings/workshops for clients on how to utilize the loan amount appropriately for the purpose of income generation to equip them with the needed resources, skills and vision to grow their small businesses into profitable entities.
| Name of the Loan Product | JLG Loans |
|---|---|
| Type of Loans | Group |
| Purpose | Income Generation |
| Loan Tenure | 12 months – 24 months |
| Loan Size | Upto Rs.60,000 |
| Interest rate | 24.95% on reducing balance method (as per RBI guidelines) |
| Processing fee | Upto 1% of loan amount + GST (on Processing fee) |
| Insurance Premium | 1 year loan premium : 1.36% (Both borrower and spouse) 2 year loan premium : 2.85% (Both borrower and spouse) |
Credit Life Insurance
The company has tied up LIC for providing credit life insurance to its borrowers. The insurance coverage is for the clients and their spouses and to the extent of loan provided. In the unfortunate event of death of borrower/spouse, a lump sum amount, after appropriating to the loan account, is paid to the family thereby helping the family reduce their debt burden and protecting their financial security.