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Micro Finance

Varam offers Group Loans through a Joint Liability Group (JLG) Product. A typical group would have 13-20 members who are given loans as per the credit bureau report and the need expressed by customers. Loans are for a period of 12 -24 months and repayable at monthly rests.
The Current rate of Interest charged to customers is 25% pa on a reducing balance basis with 1% processing fee.

Loan Cycles

1 st Cycle

  • INR 15,000 to INR 35,000
  • Period of 12 to 24 months
  • 25% p.a.
  • 1% Processing fee
  • Based on RBI Policy

2 nd Cycle

  • INR 20,000 to INR 35,000
  • Period of 12 to 24 months
  • 25% p.a.
  • 1% Processing fee
  • Based on RBI Policy

3 rd Cycle onwards

  • INR 25,000 to INR 35,000
  • Period of 12 to 24 months
  • 25% p.a.
  • 1% Processing fee
  • Based on RBI Policy

Loans can come under any of the following categories Income Generation Loans

Production Loans

Any production activity such as Wet floor making, Garment stitching, masala making, canteen, Sea shell products making, wooden toys making, artificial gem ornaments making, bouquet making etc., that involve manufacture or processing value add come under this category.

Trading Loans

These are loans meant for trading activities – any commodities purchased and sold as it is without any value addition. Examples are buying and selling of vegetables, fruits, rice, fish, saree, domestic goods and materials etc.

Service Provider Loans

These loans are meant for service related activities such as running beauty parlour, catering services, housekeeping services etc., related to human
services that are delivered on payment basis.

Business Support Loans

These loans are meant to help income generation activity of any
member of the house hold.

Top Up Loans