By Admin 
Microfinance Loan Eligibility: There are many people in the country whose income is limited and who do not have the assets or collateral to take a conventional loan from the bank. For such people, microfinance loan emerges as an important option. According to the Reserve Bank of India (RBI), microfinance loans are loans given without any guarantee.
This means that there is no need to mortgage any kind of property to get these. Generally this facility is given to those persons whose annual income is up to Rs 3 lakh. The purpose of this type of loan is to provide financial support to low income people. So that they can get financial help for their needs or starting a small business. Let us know about this…
What is microfinance loan?
Like normal loans, microfinance loans are available from banks, small finance banks and NBFCs. Apart from this, NGOs, Regional Rural Banks, Commercial Banks and Payment Banks also provide this facility. Its interest rates are not very high and are kept like a normal loan. Generally, a loan ranging from Rs 10,000 to Rs 1.25 lakh can be taken. However, in some cases this amount may be more than this.
Such loans include many options, such as education loan, consumer product loan, emergency loan, loan to increase income, agricultural loan and loan for small business or personal needs. Its duration usually ranges from 1 to 3 years. The special thing is that if a person repays the loan before time, then there is no prepayment penalty on him.
Who can take microfinance loan?
Generally, microfinance loans are given for starting small businesses, farming related work or work done to increase income. However, for this some important conditions have to be followed. Any citizen of India can apply for this, but his annual income should be up to Rs 3 lakh.
Talking about age, only people between 18 to 60 years are considered eligible for this loan. Besides, it is also important that the monthly EMI of the loan should not be more than 50 percent of the monthly income of the person. People who fulfill all the conditions can increase their income with the help of this loan.
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