Microfinance - Loans to MFIs

Axis Bank provides loans to MFIs working for economic empowerment of micro-entrepreneurs and low-income earners. These financial services are offered to the MFIs in a sustainable, ethical and profitable manner. Axis Bank has microfinance partners in almost all the regions of the country with a special focus on MFIs in underserved areas.

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Loans to MFIs

Axis Bank is actively involved in microfinance and extends financial assistance to Microfinance Institutions (MFIs). The Bank commenced lending to the microfinance sector in the year 2005. We extend credit facilities to MFIs working for economic empowerment of micro-entrepreneurs and low income earners by providing financial services in a sustainable, ethical and profitable manner. The Bank primarily extends term loans to established and well rated MFIs for further on-lending to their clients.

The Bank has microfinance partners in almost all the regions of the country with special focus on the underserved areas. The Bank plans to reach out and make a positive impact on the under-banked segments of the society by providing specially designed products and services through its partner MFIs in a commercially viable manner. This would lead to economic empowerment of the masses and bring them into the national mainstream.

Loans to JLGs/Individuals – AXIS SAHYOG

Axis Bank provides microfinance, specially designed for economically active poor women, in the form of loans to JLGs, under the Axis SAHYOG scheme. Axis SAHYOG also provides loans to individuals to help expand their existing business or take up new livelihood activities.

Loans to JLGs/Individuals – AXIS SAHYOG

The Bank started its retail microfinance operations through its branch network under flagship program Axis Sahyog in Feb, 2013.

The program aims to lend small ticket unsecured loans in the range of Rs 12k to 80k to economically active women having annual household incomes up to Rs. 3,00,000 under the Joint Liability Group (JLG) model. JLG lending is a proven microfinance model wherein the social collateral or the peer pressure of the group members ensures healthy credit discipline. These loans help the women to expand their existing businesses or take up new livelihood activities.Bank also provides insurance to women clients and their spouse/blood relative to save them from financial stress in case of exigencies if customer opts. The program is presently operational across 24 States and Union Territories, PAN India.

Loan Size	₹12000 to ₹80000
Products Offered	IGL- Income Generation Loan MTL- Mid Term Loan
Rate of Interest	Maxium interest rate – 24.50% Minimum interest rate – 23.50% *Interest rate linked with 1 year MCLR with no reset
Loan Tenure	24 months
Collateral	Unsecured loans
Applicable charges	Processing fee is 1% plus GST rounded to lower multiple of 10 to be charged to the customers for all the loans above ₹25000. No Pre-payment or Foreclosure charges
Insurance coverage	Customer and spouse/blood relative both covered against the loan amount if customer opts. Insurance premium to be borne by the customer.
Stamp Duty & other statutory document charges	As per applicable laws of state
Purpose of loan	Income generating activities and Social needs like housing, education, marriage, sanitation, etc.
Other Features	Customers have to form a Joint Liability Group to avail the loan. Each group member assumes the liability for the loans of all other members in the group.
Application form	Click here for Application form
Agreement	Click here for Agreement form
Customer redressal toll free no	1800-419-5577
penal interest	Nil
Channels	Axis Bank branches
Eligibility	Individuals those are eligible for Sahyog loans are Rural and semi urban & urban women Age of the customers should be Minimum 18 years and maximum 60 years till the end of loan tenure.
Fair Practice Code for Retail Microfinance	Click here for FPC

Loans to SHGs/JLGs through BCs

Axis Bank provides loans to SHGs (Self Help Groups) to fulfill their productive and emergent credit needs. Axis Bank also provides loans to JLGs (Joint Liability Groups) to create positive impact at the bottom of the pyramid, leading to their financial and social empowerment. Loans to individuals falling under these schemes are provided for their livelihood development.

Loans to SHGs/JLGs through BCs

Axis Bank provides loans to SHGs (Self Help Groups) to fulfil their productive and emergent credit needs. Axis Bank also provides loans to JLGs (Joint Liability Groups) to create positive impact at the bottom of the pyramid, leading to their financial and social empowerment. Loans to individuals falling under these schemes are provided for their livelihood development.

SHG Lending – Axis Pragati

Self Help Group is a homogeneous group of 10-20 micro entrepreneurs (individuals) with affinity among themselves, voluntarily formed to save whatever amount they can conveniently save out of their earnings and mutually agree to contribute to a common fund of the group. The group does internal lending to its members for meeting their productive and emergent credit needs.

SHG lending further opens up the scope for lending in unbanked areas. For SHG lending, the Bank partners with Self Help Promoting Institutions (SHPIs)/NGOs, which are already engaged in SHG promotion & livelihood development. These SHPI/NGOs act as our business correspondent/business facilitator to offer SHG loans. These loans create positive impact at the bottom of the pyramid and lead to their financial and social empowerment.

JLG Lending

In Retail Microfinance, we are Partnered With NBFC/ Pvt Ltd Company in order to facilitate the people in the base of pyramid and the under banked/unbanked population through affordable financial services. These institutions operate in this segment of society and over the years this model has proven its effectiveness in reaching to this segment in a commercially viable manner. There are certain organizations which are working with us as our Business Correspondents in various geographies over years and are able to maintain a satisfactory portfolio size with limited impairment.

Loan Size

₹6000 to ₹100000

Products Offered

IGL- Income Generation Loan
MTL- Mid Term Loan

Rate of Interest

Maximum interest rate – 26.00%
Minimum interest rate – 25.00%
*Interest rate linked with 1 year MCLR with no reset.

Loan Tenure

18-36 months

Collateral

Unsecured (No collateral loan)

Applicable charges

Processing Fees – Up to 1% of sanctioned loan amount plus applicable taxes for loan amount more than ₹25000/-

Stamp Duty & other statutory document charges

As per applicable laws of state.

Other Charges

Penal interest	NIL
Foreclosure Charges	NIL
Part payment Charges	NIL
Prepayment Charges	NIL
Legal/Collection/Repossession and incidental charges are those expenses that are not budgeted or specified but are incurred by the bank on behalf of the customer	NIL
No dues certificate/ No objection certificate	NIL

Insurance coverage

Client and spouse may be covered against the loan amount. Insurance premium to be borne by the customer

Purpose of loan

For income generating activities and Social needs.

Other Features

Customers have to form a Joint Liability group to avail the loan.
Each group member assumes the liability for the loans of all other members in the group

Customer redressal toll free no

1800-419-5577

Channels

Through empanelled business correspondents

Eligibility

Annual household income up to ₹3,00,000
Age greater than 18 years and less than or equal to 60 years at the end of loan tenure.
Other criteria applicable as laid down by RBI for Microfinance from time to time.

Fair Practice Code for Retail Microfinance

Click here for FPC

BC Application Form

Click here for Application Form

Agreement for Retail Microfinance

Click here for Agreement Form

Branch List

Click here for Branch List

Samriddhi loan

Samriddhi Loan is designed for existing group borrowers who have gradually increased their business/income and now in need of higher amount of loan. Samriddhi Loan is offered to borrowers at their individual capacity based on business viability and detailed credit assessment.

Samriddhi loan

Product features of Samriddhi Loan

Loan Size	Rs 51,000 to Rs.3,00,000 Cycle 1: Max 1.5 Lakh Cycle 2 : Max 2 Lakh Cycle 3 : Max 2.5 Lakh Cycle 4 and above : Max 3 Lakh
Products Offered	Samriddhi Loan
Rate of Interest	25% per annum *ROI is linked with 1 Year MCLR with No Reset
Tenure	24 to 36 months
Collateral	Unsecured loans
Applicable charges	Processing fees of 2% + Applicable GST. No pre-payment/partpayment charges *No benefit passed on to the borrowers in terms of premium or tenure reset in case of part-payments
Insurance coverage	Customer and spouse/blood relative covered against the loan amount if customer opts for it. Insurance premium to be borne by the customer
Purpose of loan	Income generating activities Home repair activities Agri-allied activities
Other Features	Customers with a minimum of 2 cycle vintage with Axis Bank Group loans are eligible to apply for the Samriddhi Loan.
Application form	Click here
Agreement	Click here
Customer redressal toll free no	1800-419-5577
penal interest	NA
Stamp Duty & other statutory document charge	As per applicable laws of state.
Channels	All Axis Bank Branch Operational with Group loans
Eligibility	Existing Group borrower of Axis Bank Must have completed at least 2 cycles of Group loan Age- Min 24 Years and Max 57 Years at the time of application Should not have any active group loan on the date of application Minimum household income- Rs.1,20,000 per annum
Fair Practice Code for Retail Microfinance	Click here for FPC
Branch List	Click here for Branch List