Lending

Loan services

 
Loan is the key products of JSLBBL. Loan is provided to eligible group member for self employment and income generation. There are various types of loan product offer by bank.
 
a. General Loan
After completion of the compulsory group training and group recognition test clients are eligible to take of IGAs, and can submit loan application in the center. This loan is accessible to clients with good repayment performance in the following sequence.
Year Maximum Loan Size(Rs) Loan Term Interest rate in  Diminishing
1st Year 50,000 Maximum 2 Years 18%
2nd Year 70,000
3rd Year 1,00,000
4th Year 1,50,000
5th Year 2,00,000
 
 b. Group Fund Saving Loan
This loan is disbursed  mainly for medical, consumption, education, emergency and other productive purposes . It can be repaid on equal installment bases. Members within group can apply for the loan from centre fund/group savings. This loan can be disbursed only after maintaining minimum balance Rs.500 on centre fund and can give maximum 2 person according to the group decision out of 50% of group Upakar Saving. This provision has been very helpful for the members in their dire need at the time of emergency. Group leader ‘s recommendation  is necessary for loan.The interest rate on this loan is 16% Diminishing.

c. Occupational Loan
This type of loan is mostly disbursed  on the income generating sector by promoting the traditional skill and practices of the member. After the case study  of  favourable possibility for investment done by branch office, it will send to its high level according to the necessity for the approval of loan acceptance.The annual interest rate is 18% Diminishing.
Without Collateral
Year Maximum Loan Size(Rs) Loan Term Interest rate on Diminishing
1st  Year 50,000 Maximum 2 Years 18%
2nd Year 1,00,000
3rd Year 1,50,000
4th Year 2,00,000 Maximum 3 Years
5th Year 3,00,000

With Collateral
Year Maximum Loan Size(Rs) Loan Term Interest rate on Diminishing
1st  Year 3,00,000
Maximum 5 Years
16%
3rd Year 7,00,000
 
d. Seasonal Loan
Members who have completed the first loan cycle with good repayment performance are eligible to draw seasonal loan.Seasonal  loan is special for working capital-cash crops production and petty trading purpose.
Year Maximum Loan Size(Rs) Loan Term Interest Rate in Diminishing
2nd  Year 50,000 1 Years 18%
3rd  Year 1,00,000

e. BioGas/Alternative Energy Loan
This loan is used for manufacturing biogas plant as well as for the installation of solar system. Bank offers this loan to second year’s members who have livestock and have utilized General loan with good repayment performance. The loan can be given with collateral and without collateral. Bank provides this loan with partnership with other organization or with bank’s sources itself. Annual interest rate on this loan is  18% on Diminishing and loan limit is Rs.60,000.

f. Irrigation Loan
This loan is disbursed to the borrower for the construction of tube well, canal. It is provided for the concern  group. The interest rate on this loan is 18% on Diminishing.

g. Micro-enterprise Loan
Micro-enterprise loan is designed for those who have acquired enough entrepreneurial skill and knowledge to run the enterprise.This loan is disbursed after the study of the market demand,enterprenuership capacity of  the loanee and it specially focuse to promote the traditional business.
Without Collateral
Year Maximum Loan Size(Rs) Loan Term Interest Rate on Diminishing
1st  Year 50,000
Maximum 2 Years
18%
2nd  Year 1,00,000
3rd Year 1,50,000
4th Year 2,00,000 Maximum 3 Years
5th Year 3,00,000
 
With Collateral
Year Maximum Loan Size(Rs) Loan Term     Interest Rate on       Dimminishing
1st Year 3,00,000 Maximum 5 Years 16%
3rd Year 7,00,000
 
h. Agricultural and Livestock Loan
As per the maximum requirement of the field and its client, JSLBBL has designed this loan portfolio for new and old member. As most of the poor people of our society have been engaged on one of the easiest occupation i.e. agricultural and husbandry none commercially. But the main purpose of this loan is to promote these occupations commercially with new method. This loan is used for purchasing chemical fertilizer, seeds, agricultural inputs and other things necessary for livestock.
Without Collateral
Years Maximum Loan Size(Rs) Loan Term Interest Rate on Diminishing
1st Year 50,000 Maximum 2 Years 18%
2nd Year 70,000
3rd Year 1,00,000
4th Year 1,50,000 Maximum 3 Years
5th Year 2,00,000
With Collateral
Years Maximum Loan size(Rs) Loan Term Interest Rate on  Diminishing
1st Year 3,00,000 Maximum 5 Years 16%

i. Agricultural tools purchasing loan
This loan is mainly disbursed to the client for  purchasing agricultural tools and equipment like tractor which helps to make their life easier and increase their work efficiency. The Maximum loan size is Rs.7,00,000 The interest rate on this loan is 18% on Diminishing. The loan can be disbursed on the basis of group guarantee as well as collateral guarantee and for the collateral purpose they can use the purchased tools or equipment, land/building.


j. Educational Loan
This loan is used for the children of the client to study and get higher degree of technical and vocational education. Bank offers this loan to those clients who have utilized General loan with good repayment performance. This is collateral based loan . Academic certificate is use as collateral. Annual interest rate is  16% on Diminishing.

k. Foreign Employment Loan
This loan is used for the family member of the client to go abroad for foreign employment. Bank offers this loan to those clients who have utilized General loan with good repayment performance. This loan is disbursed on collateral and without collateral both. The maximum loan size on collateral base is Rs.3,00,000 and with out collateral maximum loan size is Rs.1,00,000.The interest rate on both is 20 % Diminishing



l. Green Financing
The loan is distributed in group guarantee basis to the individuals. It is repaid in monthly installments with intrest as per the loan’s size and nature of its consumer group for the protection and promotion of the forest. The general loan ceiling is as same as foreign employment loan and interest rate is 18% on Diminishing.

m. Low cost Housing Loan
JSLBBL uses a very specific targeting strategy to ensure that all first –time client are very poor. As one of the targeting criteria is the absence of cement walls or ceiling in the client’s house, there is a strong demand for various type of housing loans. To access the housing loans the clients must have maintained strong credit discipline in the precious years, have improved economic condition from previous loans. It is provided for the client for construction of house, for repairment of the house and maximum loan size is 4,00,000. Interest rate on this loan is 18% on Diminishing  and it can be given with collateral and without collateral.

n. Commodity Lending
This loan is provide to the client for the purchasing of commodity like mobile phone, computer, television, vehicles etc which helps to empower their skill and capacity. The Maximum loan size is Rs.3,00,000 The interest rate on this loan is 12% on Flat or 18% on Diminishing.

o. Collective Lending
It is provided for the group cultivation, livestock and for the establishment of business . The interest rate on this loan is 18 % without collateral and 16% with collateral . The  maximum loan size, installment is as same as on project loan.

p. Institution Loan
Bank also provide loan to the co-operative and other institution in its operational area. It is mostly provide for the promotion of community banking in those areas.