Ujjivan Small Finance Bank Limited

UJJIVAN SMALL FINANCE BANK LIMITED PERSONAL LOAN

Years

Apply Ujjivan Small Finance Bank Limited Personal Loan

About Ujjivan Small Finance Bank

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.

About Ujjivan Small Finance Bank Personal Loan

Ujjivan Small Finance Bank Personal Loan is provided to help you in case of any financial emergency. The loan is structured such that you have immediate access to finances without any hassles. The loan has characteristic features like low processing time and minimal documentation, so that you have quick access to funds when you are in need.

The most interesting feature of these loans is that there is no restriction on the purpose of these loans. They can be used for any personal financial requirement, including a festival, travel expenses, medical expenses, higher education, construction, or even investment in your business. Being extremely flexible, these loans are the perfect option in a financial emergency. With Ujjivan Small Finance Bank Personal Loan, you have complete transparency of the entire process and the simplest application process as well.

Features and Benefits of Ujjivan Small Finance Bank Personal Loan

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.

Terms and Conditions for Ujjivan Small Finance Bank Personal Loan

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.

Eligibility Criteria for Ujjivan Small Finance Bank Personal Loan

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.

Documents Required for Ujjivan Small Finance Bank Personal Loan

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
  • 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.

Calculating Ujjivan Small Finance Bank Personal Loan EMI

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.

How to Apply for Ujjivan Small Finance Bank Personal Loan

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.

Ujjivan Small Finance Bank Personal Loan Fees and Charges

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

Salary Account in Other Bank

Type Charges Applicable

Processing fees

  • 2% of the total sanctioned loan amount + taxes as applicable.
  • The minimum amount is 2,000
  • Self-service payment channels are eligible for a rebate of 1,000.

Pre-closure charges

  • 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.

Late payment fees/ overdue interest charges

  • 250 is charged in case of any cheque bounce, ECS, or ACH.
  • For any delayed repayment towards EMI, an interest of 2.50% is charged as penalty.
  • You get a grace period of 3 days from the decided due date in order to make your payment.

Stamp duty

All fees towards the stamp duty on the declarations, agreements, and other documents as per the current charges will be paid by the application.

Credit bureau charges

35 + applicable taxes

Loan credit shield

  • A life insurance cover must be obtained for the same tenure as the loan. This will be rounded off to the next depending upon when the application was sent.
  • Ujjivan has collaborations with third part life insurance providers. The terms and conditions extended to the borrower are as per the agreement between the third party and Ujjivan.
  • All payments towards the premium will be made by the applicant. This will be deducted from the loan amount when being sanctioned.

Change in repayment account

  • Customers who wish to make changes in the repayment account will have to pay an additional fee of 250.
  • In order to make any changes in the existing bank account, an E-mandate or ACH mandate must be obtained by the bank.

Salary Account in Ujjivan

Type Charges Applicable

Processing fees

1.50% of the sanctioned loan amount + applicable GST.

Pre-closure charges

  • 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.

Cheque bounce/ Standing Instruction fail/ ACH fail charges

250 + applicable GST

Penal interest charges

  • 2.5% per month of the EMI amount from the payment that is delayed.
  • You get a grace period of 3 days from the decided due date in order to make your payment.

Duplicate repayment schedule charges

100 + applicable GST

Duplicate account statement charges

100 + applicable GST

Changes in post-dated cheque

250 + applicable GST

Document charges for bureau

35 + applicable GST

Pre-closure statement through branch

500 + applicable GST

Pre-closure statement through IB.MB

No charges

Ujjivan Small Finance Bank Personal Loan - Customer Care Details

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

FAQs - Ujjivan Small Finance Bank Personal Loan

Are Personal Loans eligible for any tax benefits?

Unlike a home loan, a Personal Loan is not eligible for a tax benefit per se. The purpose of the loan determines whether you will be able to get any rebate on these Personal Loans or not. Any Personal Loan that is used for business investments or for construction of property is eligible for tax benefits. Even with these tax benefits, only the interest payable is taken into consideration, unlike home loans, where even the principal amount is included for tax benefits.

What purpose can the Personal Loan be used for?

The main feature of a Personal Loan is that it can be used for any financial requirement that you may have. This includes organizing a family function, travel expenses, higher education, medical emergency, etc. The purpose of these loans is very flexible, making them the best option for you in case of a financial emergency.

How long will it take for the loan amount to be disbursed into the account?

Ujjivan is known for giving you the fastest turnaround time with loans. With Personal Loans, especially, quick disbursal is a characteristic feature. To make sure that you have the funds that you need, these Personal Loans are disbursed within 72 hours of submitting an application.

Is it necessary to pledge any asset in order to get a Personal Loan?

Personal Loans by Ujjivan are based on the eligibility criteria of the individual who is applying for the loan. You do not have to provide any collateral or security against these loans.

Is it possible to apply for these Personal Loans jointly with a spouse or family member?

No. Ujjivan currently does not provide you with the option of applying for any Personal Loan jointly. These loans are classified as "individual only" loans. This means that it is not possible for you to club your income with the income of your spouse in order to improve the eligibility criteria.

How are Personal Loans disbursed?

When you submit your loan application and documents, they are assessed to check your eligibility. If you are eligible for the loan and it is approved, the sanctioned amount will be disbursed into your salary account directly.

What are the repayment options available with these loans?

You have several options to make repayments on these loans. If you have an account with Ujjivan, the amount is auto-debited from the account. In the case of other banks, you can make use of ECS or ACH to make repayments on your loan.

What if I am unable to repay the EMI on the due date?

You will receive reminders through the phone, email, SMS, fax, and other communication channels if you do not pay the EMI on the due date. You will also be able to get a grace period of 3 days to make this repayment. However, if EMI is not repaid even after the grace period, it is considered a default and will be handled accordingly. It is also necessary to remember that these delays affect your credit score negatively?

Is it possible to make part-payments on my loan?

With Ujjivan, you do not have the option of making part payments on your Personal Loan. Any payment that you make prior to the due date is considered as part of the EMIs that are payable in the future.

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