Ujjivan Small Finance Bank
Personal Loan

Ujjivan Small Finance Bank Limited caters especially to the segments that are underserved or unserved. The goal of this bank is to build a sense of financial inclusion in India. The loans have unique features that help those who are considered "economically active poor" get access to financial assistance, which is normally not provided by other institutions.

The bank has a vast customer base of 4.72 million. It operates out of a total of 24 states and union territories to give customers pan India access to Easy and Affordable Personal Loan options.

As these loans are designed to cater to a wider customer base, they come with several special features. Some unique features of the loan are mentioned below:

• Loan quantum: Customers can get a minimum loan amount of 50,000 and a maximum of 15 Lakhs. 
  Best rates of interest. In order to make repayment affordable, these Personal Loans provide the competitive rate of interest. The rate of interest currently varies between 16.49% and 23.99%. The Personal Loan rate of interest depends upon various factors, such as the income of the individual, their credit score, and so on.
• Flexible repayment tenure: You have repayment tenure between 1 to 5 years. Repayments can be made in easy EMIs over this period.
• Minimum documentation: The documentation is very minimal with these loans to make sure that you are able to get the loan disbursed in the shortest period of time.
• Quick approval: These Personal Loans are approved within 72 hours or 3 working days from the time the loan application has been submitted.
• Insurance plan: To help customers repay even under difficult financial conditions, the loan plan also extends an insurance policy that covers the Personal Loan.
• Zero collateral required: You do not have to provide any collateral against these loans, making it much easier for you to get the loan that you need.
• Pre-closure charges: In order to help you consolidate your loans faster, Ujjivan also gives you the option to pre-close your loan account. However, there is no part payment option available with this bank.

There are certain pre-closure charges that are applicable on Personal Loans as mentioned below:

• If the prepayment is made before 12 EMIs are completed: 2% on the outstanding principal plus taxes as applicable.
• If the prepayment is made after 12 EMIS are complete: 1% of the outstanding principal plus taxes as applicable.

Every loan plan comes with a set of terms and conditions that you should be aware of before you apply for the loan.

Here are the common terms and conditions of Ujjival Small Finance Bank Personal Loan:

• Rate of Interest: The ROI applicable on the loan is based on the per annum rate that is agreed upon the balance that is daily reducing. There is a chance of fluctuation in these rates of interest based on changes in pricing or changes in the MCLR, which these loans are based on. Ujjivan also has the sole discretion to increase or decrease the rate of interest even when the MCLR is constant.
• Intimation of changes in the rate of interest: The change in the ROI will be notified to the customers through notice boards in various branches. They also publish any revised rates of interest in newspapers and on the website of Ujjivan Small Finance Bank.
• Disbursement: The loan amount sanctioned is disbursed into the salary account of the borrower via NEFT or RTGS. In case there has been a transfer of balance, the disbursement is made in the form of NEFT or a Cheque in favor of the previous lender.
• Mode of repayment: The loan is repaid in the form of Equated Monthly Instalments or EMIs. This can be done through auto-debit in case of an Ujjivan Finance Bank Account, or though ECS or Automated Clearing House. These repayments should be made on the date provided on the loan agreement. Until the loan is repaid in full, the borrower must not have any outstanding.
• Consent for E-KYC, bureau check, DND Deactivation: The borrower must provide unconditional consent to Ujjivan Small Finance Bank for the above undertakings.
• Charges: All credit bureau charges are recovered from the proceeds generated by the loan. All the charges shall be debited into the loan account of the borrower, which must later be reimbursed to the bank. If not, it is added to the principal loan amount.
• Pre-closure: Borrowers have the option of prepaying the loan. The charges are applicable as per the number of EMIs that are paid before pre-closing the loan. Part-payment of dues is not allowed.
• Digital procedure: The processing of the loan, documentation, and sanctioning of the loan involves various e-platforms. The applicant of the loan is bound by all these e-processes that have been adopted by the bank. For this, the user must have access to a PC, Smartphone or a laptop that comes with adequate connectivity. The e-signature of the applicant must be submitted with the application along with all the documents.
• Default: All the following instances will be considered a default:
  • Improper conduct of the loan or breaching the loan terms
  • Delay or failure to make the payment towards the EMI as decided
  • Defaults made with respect to any other loan that has been availed through Ujjivan or other financial institutions.
  • Any wrong information provided to the bank at the time of application of the loan
    In case the borrower files an application to declare insolvency or if any similar order is passed against the individual.
• In case of any default or dispute, the decision taken by Ujjivan will be final and conclusive and will be binding for the borrower.
• In case of defaults in the repayment of the loan, the bank will provide reminders in the form of phone calls, post, fax, emails, SMS or may even employ third parties to recover the loan. These third parties will follow the Indian Bank Association's Code of Conduct, which provides specific regulations with respect to collections.
• Ujjivan Small Finance Bank bears sole discretion to make changes to the terms and agreements of the loan as deemed necessary.

The eligibility criteria for Ujjivan Small Finance Bank Personal Loan are quite simple and straightforward. This is done to ensure that individuals are able to get approvals on their loans easily.

The eligibility criteria for these Personal Loans are as follows:

• The applicant should be between 22 and 58 years of age.
• The applicant should have some regular source of income. These loans are only provided to salaried individuals.
• The individual should have a minimum net monthly salary that is greater or equal to the minimum wage limit that is prescribed by the state.

The final decision about sanctioning the loan to the individual is based on the discretion of Ujjivan Small Finance Bank.

As mentioned before, documentation is minimal with Ujjivan Small Finance Bank Personal Loan. This is another measure that has been taken to make sure that the processing time for the loan is reduced.

The documents that you will have to submit along with your application form are as follows:

• Address Proof - any one of the below-mentioned
• Passport
• Driving License
• Voter's ID
• Aadhar Card
• Income Proof: Salary slip for the last 3 months
  • Last 6 months statement of salary account, showing that the salary has been credited to the account
  • PAN Card
  • ID Card from the company that the applicant is working for
  • Passport-sized photograph

The bank may request additional documents as per the application and the eligibility criteria of the applicant. In such cases, the individual must submit the necessary documents in order for the processing of the loan amount to be resumed.

Make sure that you are aware of the EMI chargeable on your loan before you submit an application. This helps you understand if the loan is affordable for you as per your income and other expenses.

When it comes to EMI calculation, there are two options that are available to you:

Using the formula:

When it comes to EMI calculation, banks make use of a standard formula which is as follows:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

In this formula, P is the principal amount, N is the tenure of the loan and R is the rate of interest applicable on the loan.

• Using the MyMoneyMantra EMI Calculator: An EMI Calculator is an online financial tool that you can make use of when you want to calculate your EMI exactly. All you have to do is enter the loan amount, the interest rate, and the tenure of the loan to get your final EMI amount. This is a better option as there are no errors. It is, of course, the more convenient option available to you.

Once you have calculated the EMI, you need to make sure that the repayment is affordable for you after you have taken care of all the other mandatory expenses like rent, food, school fees, and more. If the EMI is above your budget, there are two options that you can choose from. First, look for a loan that offers you a better deal. Next, you can try to cut down on your expenses to make sure that you are able to afford the EMI without any additional financial burden each month.

If Ujjivan Small Finance Bank Personal Loan suits your requirements perfectly, you have a few different options available to apply for these loans, as mentioned below:

Through the official website of Ujjivan Small Finance Bank

• Log on to ujjivansfb.in
• Choose the Personal Loan section on the menu bar and click on apply now
• Fill up the application form provided in the following window
• Upload all the necessary documents online
• After the application has been submitted, these documents are assessed and verified
• Once the loan is approved, the sanctioned amount will be disbursed into your salary account
   

In a branch nearby:

• Visit your nearest Ujjivan Small Finance Bank
• Fill up an application form and submit it with the necessary documents
  Once the documents are assessed and reviewed, the loan amount will be disbursed to your account once approved.

Through MyMoneyMantra

• MyMoneyMantra offers a great platform for customers to apply for their loans
• Log on to the MyMoneyMantra website
• Fill up an application form with details like your name, gender, age, place of income, etc.
• Choose the bank and the type of loan that you want to apply for
• Once the application has been sent, you will be contacted by representatives from MyMoneyMantra.
• The documents will be picked up from your doorstep and will be delivered along with the application form to the bank.
• MyMoneyMantra will take care of all loan procedures and will help speed up the processing of your loan as well.

The charges and fees applicable for Ujjivan Small Finance Bank Personal Loans are as follows:

Salary Account in Other Bank

In case you have any queries or grievances, you have a dedicated customer care service provided by Ujjivan Small Finance Bank.

To call customer care, dial 1800-208-2121

To send an email to customer care: customercare@ujjivan.com