Micro Lending

 Apply on WhatsApp
  1. Home
  2. Products
  3. Micro Lending

Micro Lending Loan

Micro-lending or microfinance loans refer to collateral-free loans offered to households with an annual income of up to ₹3,00,000, regardless of the purpose of the loan or the method of application, processing, or disbursal—whether through physical or digital channels. For this purpose, a household is defined as a single family unit, comprising a husband, wife, and their unmarried children.


Calculate your Loan EMI instantly


|
0 |
25L |
50L |
75L |
100L |
125L |
150L |
175L |
200L
%
|
5 |
10 |
15 |
20 |
25 |
30 |
36
|
0 |
5 |
10 |
15 |
20 |
25 |
30

Loan EMI

₹24,959

Total Interest Payable

₹34,90,279

Total Payment
(Principal + Interest)

₹59,90,279


  • Loan up to Rs. 1 lakh

    Members are eligible to get a maximum loan of Rs. 1,00,000/- depending on loan eligibility and cycle. Loans are given only for income generating activities such as poultry, fisheries, animal husbandry, vegetable vendor, papad, small cottage industries etc.

  • Flexible Repayment Tenure

    Members have the option to pay the EMI on a weekly, fortnightly, or monthly basis. However, the monthly EMI is the most widely accepted mode of repayment.

  • No Collateral

    Members can avail collateral free loan under Micro Lending of HDBFS. It is based on JLG model where social collateral is required to avail loan from the organization.

  • Doorstep Onboarding and Collection Process -

    All activities in the HDBFS micro lending product are conducted at the member’s house or village, except for disbursement.

  • Insurance Coverage

    Members and their husband are given insurance coverage till the loan tenure. Sum insured is equal to the loan amount disbursed to the customer.

  • Disbursement in saving account in 3 days

    The entire process of customer onboarding until disbursement in HDBFS takes 3 days, making it one of the best in the industry.

Rule 1: Loans to customer only in group

A group is a set of four-eight individual women from similar economic backgrounds or occupations, who know and trust each other and come together to become customers of HDB Financial Services. Apart from group criteria, an individual should have below mentioned eligibility.

Rule 2 : Economically active Poor Women

  • Salaried
  • Self Employed
  • Daily wage workers
  • Housewives

Rule 3:  Age 18-55 repeated twice.

Rule 4: Household income of the customer should not be more than 3 lakh rupees. Monthly loan obligation of the household should not be more than 50% of the monthly household income.
Household means an individual family unit i.e husband, wife and their unmarried children.

Rule 5: Members in a group should not be Blood Relatives.

  • Mother - Daughter
  • Mother-in-law - Daughter in law
  • Sisters
  • Sister-in-law
  • Co - sisters (brother's wives)

Rule 6: Proximity of group members

  • The group members should be residing within 300-500 meters of each other.
  • Customers should reside in the same area for more than 5 years.
  • Should know each other for at least 2-3 years.

Rule 7: Group Has To Understand the concept of JLG

  • Group unity means solidarity and commitment to each other and the group at all times to HDB Financial Service.
  • Agrees to pay the EMI of other members of the group if they default or are unable to pay.
  • Help HDBFS to track the customer in case of migration or willful default.
  • In the case of temporary repayment problem of a member like illness in the family, late payment of salary etc, the other group members must lend to this person to overcome the problem.

Document Required (Customer)

  • Identity Proof - Voter Id 
  • Current Residential proof - Voter Id or Aadhar card  (With Aadhar masking feature)
  • Bank Passbook
  • Photographs - Recent passport size 2 photographs

Document Required (Husband)

Any one of the following

  • Voter Id
  • Driving License (not expired) 
  • Pan card
  • Passport (not expired)

Fair Practice Code - HDBFS

Loan Process

  1. The process of applying for a loan will not be cumbersome.
  2. The rate of interest charged will be in adherence with the RBI guidelines.
  3. Only relevant documents, in accordance with KYC norms set by RBI, will be collected from customers.
  4. The RBI guidelines for preventing over-indebtedness among customers will be followed.
  5. All loan applications will be verified by field staff and go through necessary credit bureau checks to ensure the repayment capacity of the borrowers.
  6. The moratorium between grant of loan and due date of repayment of first installment will be at least equal to repayment frequency.
  7. No late fee will be charged on late payment.
  8. No penalty will be charged on prepayment.
  9. No security deposit or margin will be collected.

Disbursement

  1. The disbursement time will be intimated to the customers in advance.
  2. All disbursement of loans will be done at a central location.
  3. There will be more than one individual involved in the process of disbursement.

Collection

  1. Collection will happen in a centralized location.
  2. Collection will be done by employees of HDBFS and collection will not be outsourced to recovery agents.
  3. The field staff will adhere to the Employee Code of Conduct (ECOC) and the Collection Code of Conduct (CCOC).
  4. Field staff shall be trained to inculcate appropriate behavior towards customers.
  5. Collection by the field staff will not be done using any abusive or coercive methods.
  6. Customers will be informed about registering complaints on the customer care number.
  7. HDBFS shall be accountable for inappropriate behavior by its employees or employees of the outsourced agency.

Take the next step & manage your immediate financial needs now.

Apply on WhatsApp
How to apply for Micro Lending s from HDB Financial Services Ltd

    1. Initial Inquiry:

    Visit your nearest HDB Financial Services branch to inquire about a Micro Loan. You can also be contacted by our staff after a projection meeting conducted in your village or locality. Note that the application must be made as part of a group with a minimum of four members.

    2. Schedule Data Entry:

    Confirm a convenient time for our team to visit your home for the initial Quick Data Entry (QDE) and detailed Data Entry process.

    3. Group Training Sessions:

    If you have valid KYC documents, a working mobile number, and a satisfactory credit bureau report, our team will schedule:

    • Compulsory Group Training 1 (CGT1)
    • Compulsory Group Training 2 (CGT2)

    4. Group Recognition Test (GRT):

    Once training is complete, the Branch In-Charge will conduct a Group Recognition Test to assess eligibility.

    5. Loan Sanction:

    If all data entries and documents are found to be accurate and complete, the loan will be sanctioned.

    6. Loan Disbursement:

    The loan amount will be disbursed only at the branch and credited to the member’s savings account.

    7. EMI Information:

    On the day of disbursement, the branch will inform you of your first EMI (Equated Monthly Installment) due date.

*HDB Financial Services Ltd may use the services of various agents on its behalf for the purpose of sales and marketing for HDB's products and services.

Micro Lending FAQs

Microfinance, or micro lending, refers to the provision of basic financial services—including microcredit, microinsurance, and savings accounts—to low-income individuals or groups who are typically excluded from traditional banking systems. These services are designed to support financial inclusion and empower underserved communities. 
Women aged between 18 and 55 years, whether married, divorced, or widowed, with valid Know Your Customer (KYC) documents and an active mobile number, are eligible to apply for a Micro Lending Loan. 
HDB Financial Services is committed to reimagining opportunities by valuing your financial needs and offering quick micro lending solutions with the following benefits:
  • Loan disbursal within 3 days
  • Doorstep customer service
  • Access to multiple products under a single umbrella
  • Minimal documentation requirements 
The maximum loan amount you can apply for increases with each loan cycle:
  • First cycle: ₹30,000
  • Second cycle: ₹40,000
  • Third cycle: ₹50,000
  • Fourth cycle: ₹60,000 

The loan tenure varies based on the loan cycle:

  • First and Second cycles: 18 months
  • Third cycle onwards: 24 months
  • Top-up loans: 6 to 12 months 

The following charges are applicable:

  • Interest rate: Up to 26% (diminishing)
  • Processing fee: 1.5% of the loan amount
  • Insurance fee: 1% of the loan amount, covering both husband and wife 
While you cannot complete the entire application process online, you can express your interest through the online portal. Upon receiving your inquiry, the branch will contact you to initiate the customer onboarding process, provided the group formation criteria are met. 
No, HDB Financial Services does not levy any foreclosure or part-payment charges on Micro Lending Loans. 
Customers have the flexibility to choose from the following repayment frequencies:
  • Weekly
  • Fortnightly
  • Monthly 
Yes, Micro Lending Loans are available in various locations. Please check the branch list on the HDB Financial Services website to find the nearest branch in your city. 
Yes, Micro Lending Loans are designed exclusively for women, focusing on enhancing their financial conditions through entrepreneurship.