Loan Schemes – Farmers Development Microfinance Pvt. Ltd.

LOAN SCHEMES, TYPES, TENURE, AND INTEREST RATES.

Microcredit products shall provide access to low-income individuals, groups and cooperatives, and small businesses backed with noble purpose of enhancing their income and livelihoods. The interest rates of these loan products shall vary and will depend on the risk profile, loan tenor and cost of fund. FDMPL shall offer the following credit schemes:

Micro Enterprise Loan
Agriculture Loan
Education Loan
Rural Housing Loan
Transport Loan
General purpose Loan
Loan Against Shares
Loan Against Fixed Deposit

1) MICRO ENTERPRISE LOAN

Micro Enterprise loan is a commercial loan which can be availed by micro entrepreneurs which plans to set up a new business/purchase or plans to expand it. This loan shall be apprised and sanctioned against healthy prospective cash flows, collateral and guarantee as below:

SL.No	Feature	Description
1	Eligibility	Any individual with valid trade license.
2	Purpose	Partial financing of a new business. To purchase an existing business. Expansion of existing business. Overdraft Facilitation. for existing business
3	Interest Rate	17% or as determined by the institution from time to time.
5	Tenure	Maximum 5 years.
6	Maximum Amount	Maximum of Nu. 500,000 (five hundred thousand) subject to application of regulatory LTI & LTV.

2) AGRICULTURE LOAN

In order to help enhance the farmers’ agricultural productivity and income, the FDMPL shall provide Agriculture Loan on satisfaction of collateral pledged and guarantee as below:

SL.No	Feature	Description
1	Eligibility	Any individuals, groups & Co-operatives.
2	Purpose	Purchase of farm machinery, equipment, etc. Purchase land for farming. Farm land development Crop protection works & equipment. Purchase of seeds, saplings, pesticides, manures, etc. Purchase of livestock & feeds. Setting up storage facility & greenhouse. Any other farming related activities.
3	Interest Rate	17% or as determined by the institution from time to time.
5	Tenure	Maximum 5 years.
6	Maximum Amount	Maximum of Nu. 500,000 (five hundred thousand) subject to application of regulatory LTI & LTV.
7	Repayment	Monthly instalments.
8	Financial discipline features	Borrowers must provide some collateral. Penalty interest rate. Rigorous loan monitoring. Selection of household with diversified income sources.

3) EDUCATION LOAN

To help the rural communities provide quality education for their children, education loan shall be provided based on provision of collateral and guarantee as below:

SL.No	Feature	Description
1	Eligibility	Any individual parent of children aged 18 and above undergoing education, and parents themselves undergoing education.
2	Purpose	Pursuing higher education in either in-country or ex-country. Skills development. Purchase of laptop, desktop, etc. Paying tuition fees, and other education expenses.
3	Interest Rate	17% or as determined by the institution from time to time.
5	Tenure	Maximum 5 years.
6	Maximum Amount	Maximum of Nu. 500,000 (five hundred thousand) subject to application of regulatory LTI & LTV.
7	Repayment	Monthly instalments.
8	Financial discipline features	Borrowers must provide some collateral. Penalty interest rate. Rigorous loan monitoring.

4) RURAL HOUSING LOAN

Rural Housing Loan shall be provided based on provision of collateral and guarantee as below:

SL.No	Feature	Description
1	Eligibility	Any individual with registered land ownership.
2	Purpose	Construction of new house. Renovation and maintenance of existing house. Improvement of sanitary facilities.
3	Interest Rate	17% or as determined by the institution from time to time.
5	Tenure	Maximum 5 years.
6	Maximum Amount	Maximum of Nu. 500,000 (five hundred thousand) subject to application of regulatory LTI & LTV.
7	Repayment	Monthly instalments.
8	Financial discipline features	Borrowers must provide some collateral. Penalty interest rate. Rigorous loan monitoring.

5) TRANSPORT LOAN

The transport loan shall be sanction based on the following features:

SL.No	Feature	Description
1	Eligibility	Any individual with reliable source of income.
2	Purpose	Purchase utility vehicle, taxi, and other transport vehicle.
3	Interest Rate	17% or as determined by the institution from time to time.
5	Tenure	Maximum 5 years.
6	Maximum Amount	Maximum of Nu. 500,000 (five hundred thousand) subject to application of regulatory LTI & LTV.
7	Repayment	Monthly instalments.
8	Financial discipline features	Borrowers must provide some collateral. Penalty interest rate. Rigorous loan monitoring.

6) GENERAL PURPOSE LOAN

The general purpose shall be available for purpose other than those listed above as described below:

SL.No	Feature	Description
1	Eligibility	Any individual with reliable source of income.
2	Purpose	Purchase home appliances. Purchase of fixed assets such as land and house. Investment in securities. Purchase gadgets. Emergency purposes.
3	Interest Rate	17% or as determined by the institution from time to time.
5	Tenure	Maximum 5 years.
6	Maximum Amount	Maximum of Nu. 500,000 (five hundred thousand) subject to application of regulatory LTI & LTV.
7	Repayment	Monthly instalments.
8	Financial discipline features	Borrowers must provide some collateral. Penalty interest rate. Rigorous loan monitoring.

7) LOAN AGAINST SHARES

This category of loan is one of the most secured loan and shall be provided against the security of borrowers fixed deposits made with the institution as below:

SL.No	Feature	Description
1	Eligibility	Any individual with credit worthiness and owning shares of a listed company.
2	Purpose	Purchase shares of a listed companies. Any other general purposes.
3	Interest Rate	17% or as determined by the institution from time to time.
5	Tenure	Maximum 5 years.
6	Maximum Amount	Maximum of Nu. 500,000 (five hundred thousand) subject to application of regulatory LTI & LTV.

8) LOAN AGAINST FIXED DEPOSITS