Features and Benefits of Ujjivan Small Finance Bank Personal Loan
The Ujjivan Small Finance Bank Personal Loan is designed to meet the emergency needs of all borrowers, irrespective of their location, income or social standing. With the aim of establishing financial inclusion, the NBFC of Ujjivan Small Finance Bank offers multiple banking and loan products. Starting in 2005, it has now expanded to over 24 states and union territories, covering 248 districts.
Personal loans at Ujjivan Small Finance Bank Personal loans are offered to exclusively salaried professionals. Check out its features and benefits below.
- Loan Amount: When a borrower applies for a personal loan from Ujjivan Small Finance Bank, they are eligible for an amount ranging from Rs.50,000 to Rs.15 lakh, depending on the financial need.
- Loan Repayment: The repayment period for Ujjivan Personal Loans range from 12 to 60 months, depending on the applicant’s financial capacity.
- Collateral-Free Loan: Ujjivan Small Finance Bank does not require any security to obtain a personal loan.
- Contactless Documentation: The documentation process is simple, quick and completely contactless. A representative from the bank helps you with online document uploads and application processes throughout.
- Quick Approval: The loan is usually authorised within four days of receiving the application.
- Borrower Insurance: Ujjivan Small Finance Bank also provides a loan protection plan in addition to personal loans so that there are no risks involved in the long term.
- Simple Loan Application Process: Applying for an Ujjivan Small Finance personal loan is quite easy. You can just visit their website, fill in the form and submit. A dedicated representative from the bank will get in touch with you immediately after to help you with the process.
Ujjivan Small Finance Bank Personal Loan Eligibility Criteria
As explained below, the Ujjivan Small Finance Bank Personal Loan eligibility criteria are made straightforward to ensure easy and quick approval, avoiding lengthy processes and long wait times.
- The borrower’s age must be 22 years and must not exceed 58 years of age.
- The borrower must have a source of regular income. Only salaried individuals are eligible for these loans.
- The borrower’s net monthly salary must be equal to or greater than the state’s prescribed minimum wage limit.
However, Ujjivan Small Finance Bank has the right to sanction the loan to the individual at its discretion.
Factors Affecting the Eligibility Criteria of Ujjivan Small Finance Bank Personal Loan
- Monthly Income of the Borrower: The lender will want to see proof of a sufficient monthly income to ensure that you can repay the loan on time. The higher your monthly income, the more chances you have to be eligible for a personal loan.
- Credit Score of the Borrower: A credit score is a three-digit number calculated using data from your credit history. In other words, it tells the lender how responsible you have been with credit in the past, such as loans and credit card payments. In India, most lenders use the CIBIL score, which ranges from 300 to 900. The higher your credit score, the more chances you have to be eligible for a loan. An average score of 700 is considered decent for being eligible for personal loans.
- Age of the Borrower: Age is an important factor when it comes to checking the eligibility of the borrower. The lender needs to ensure that you have a good amount of working years remaining so that you can repay the loan on time without facing any financial issues. Mostly, banks and NBFCs prefer their borrower’s ages to be between 23 and 58. The more working years you are left with, the higher chances you have of being eligible for a personal loan.
- Work Experience of the Borrower: Lenders consider applicants with more work experience to be highly eligible for a loan as they demonstrate stable income and better chances of repaying the loan on time. However, requirements of minimum work experience vary from one lender to another.
Before applying for a personal loan, it is highly recommended to check the eligibility criteria of the bank. Apply only at those banks where you fall well into the eligibility criteria for higher chances of getting your loan approved.
Ujjivan Small Finance Bank Fees and Charges
| Particulars | Charges |
| Processing Fee | - 0.8% on the borrowed loan amount + applicable taxes for loans ranging from Rs.5 to 10 lakhs.
- 1% on the borrowed loan amount + applicable taxes for loans ranging from Rs. 2 to 5 lakhs.
- 1.5% on the borrowed loan amount + applicable taxes for loans below Rs. 2 lakhs.
- Rs 1,500 is the minimum amount
|
| Pre-closure Charges | - If the prepayment is made before the first 12 EMIs are completed, the interest rate will be 3% plus any applicable taxes.
- If you make a prepayment after 12 EMIs have been completed, you will be charged 2% of the outstanding amount plus any applicable taxes.
- If you make a prepayment after 24 EMIs have been completed, you will be charged 1% of the outstanding amount plus any applicable taxes
- Not applicable for the first 6 months of the EMIs
|
| Change in Repayment Account | Rs. 250 + applicable charges, in case the borrower wants to change to another bank account as a repayment account. |
| Penal interest charges | - A penalty of 2.50% is levied for any EMI payments that are made late.
- Additionally, you have a three-day grace time after the due date has been passed, to make your payment. If the borrower repays the amount within the grace period then a late fee payment is not required. However, failing to do so would lead to penalties charged from the mentioned due date.
|
| Insurance | As per insurer guidelines, if opted for by the customer voluntarily. |
| Late Payment Charges | Rs. 250 per late EMI |
| Standing Instruction fails, Cheque bounce, ACH fail charges | Rs. 250 + applicable GST |
| Duplicate repayment schedule charges | Rs. 100 + applicable GST |
| Duplicate account statement charges | Rs. 100 + applicable GST |
| Changes in post-dated cheque | Rs. 250 + applicable GST |
| Document charges for bureau | Rs. 35 + applicable GST |
| Pre-closure statement through branch | Rs. 500 + applicable GST |
| Pre-closure statement through IB/MB | No applicable charges |
Documents Required for Ujjivan Small Finance Bank Personal Loan
The documents required for Ujjivan Small Finance Bank Personal Loan are mentioned below:
- Identity/Address Proofs like:
- Aadhaar Card
- PAN Card
- Driving Licence
- Passport
- Voter ID
- Proof of Income:
- Last 3 months’ salary slips
- State of salary account of the last 6 months, proving that the salary was being credited into the account.
- Any valid ID Card of the organisation where the borrower is currently employed
- A passport-sized photograph
The document requirements for Ujjivan Small Finance Bank Personal Loan may differ as per the eligibility of the borrower. The NBFC may ask for some additional documents if needed. In this case, it is mandatory for the borrower to submit the additional documents as asked by the NBFC for complete verification.
Ujjivan Small Finance Bank Personal Loan Interest Rates
Currently, Ujjivan Small Finance Bank Personal Loan interest rates range between 11.49% p.a. and go up to 16.49% per annum. However, the interest rates may be subject to change from time to time as per RBI guidelines. The exact interest rate for each loan application is determined by the loan amount, tenure and the credit profile of the applicant.
| Minimum Interest Rate | 11.49% |
| Maximum Interest Rate | 16.49% |
| Mean Interest Rate | 13.99% |
Factors Affecting Ujjivan Small Finance Bank Personal Loan Interest Rates
- Borrower’s Monthly Income: The monthly income of the borrower plays an important part in determining the interest rate of their borrowed amount. If the borrower has a high income, the interest rates are most likely to be low. This is due to the augmented loan repayment potential of high-income individuals, which prove to be less risky and are more likely to repay their EMIs on time.
- Period of Loan: The time period for which the loan has been sanctioned also plays quite a significant role in concluding the interest rates on the borrowed loan amount. The tenure of the loan is directly proportional to the interest rate. If the time period of the borrowed loan is longer, then the rate of interest will also be high, increasing the monthly EMI amount as well, and vice versa.
- Debt-to-Income Ratio (DTI): The debt-to-income ratio measures how much debt you have compared to how much money you make each month. It’s critical that your monthly debts stay well below your monthly gross income, resulting in a smaller DTI ratio. A borrower’s DTI should be kept low to attract more affordable interest rates because it displays a stable repayment capability.
- Relationship between Bank and Borrower: If the borrower is already a customer of Ujjivan Small Finance Bank, their interest rate on the borrowed amount would be low compared to others. It is quite important to maintain a decent relationship with the bank for the best interest rates and discounts. An existing customer who maintained a balanced relationship by clearing their dues on or before time is more likely to avail lower interest rate on their borrowed loan amount.
How Does the EMI Calculation Work for Ujjivan Small Finance Bank Personal Loans?
The EMI charged on your borrowed loan changes depending on the loan amount. So, ensuring your monthly EMIs before applying for a loan is highly imminent. Use the Pluto Money EMI Calculator to calculate your monthly EMIs instantly. Feed your loan amount, tenure and interest rate to gauge your equated monthly investment hassle-free.
You can also use the formula given eto calculate your EMIs manually.
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
According to this formula, P is your principal amount, N is your tenure of the loan, whereas R is your rate of interest applicable on loan taken.
How Does Ujjivan Small Finance Bank Compare with Other Lenders?
| Bank/NBFC | Interest Rates Per Annum |
| Ujjivan Small Finance Bank | 11.49% to 16.49% p.a. |
| State Bank of India | 9.60% to 15.65% p.a. |
| HDFC Bank | 10.50% to 21.00% p.a. |
| ICICI Bank | 10.50% to 19.00% p.a. |
| Kotak Mahindra Bank | 10.25% onwards |
| Axis Bank | 12.00% to 21.00% p.a. |
| IDFC First | 12.50% to 18.00% p.a. |
| Bajaj Finserv | 12.99% onwards |
| HSBC Bank | 9.50% to 15.25% p.a. |
| Punjab National Bank | 9.50% onwards |
| State Bank of India | 9.60% to 15.65% p.a. |
| HDFC Bank | 10.50% to 21.00% p.a. |
Ujjivan Small Finance Bank Personal Loan Customer Care Number
For any queries or grievances, you can reach out to Ujjivan Small Finance Bank via the feedback section on their official website or visit the nearest branch. The customer care details are given below:
- Customer Care Number: 1800-208-2121.
- Email: customercare@ujjivan.com
FAQs
What is the minimum salary for a personal loan?A person must have a secured source of income, and the minimum salary they need to earn is Rs. 15,000 per month.
Does Ujjivan Small Finance Bank have a fixed rate of interest on a personal loan?Yes. Interest rates for Ujjivan Small Finance Bank Personal Loan starting from 11.49% to 16.49% p.a. The rate of interest is dynamic and varies depending on the various factors.
What are the benefits Ujjivan Small Finance Bank provides on a personal loan?Some of the benefits Ujjivan Small Finance Bank provides on a personal loan are a lower rate of interest, long repayment tenure, minimal and contactless documentation, and quick approval of loans.
What are the documents required in Ujjivan Small Finance Bank for a Personal loan?The required documents for an Ujjivan Small Finance Bank Personal Loan are identity, income and address proofs, the ID Card of the current organisation and passport size photograph.
What is the maximum and minimum personal Loan amount I can get from Ujjivan Small Finance Bank?The minimum personal loan amount you can take from Ujjivan Small Finance Bank is Rs. 50,000, whereas the maximum loan amount you can get is Rs. 10 lakhs.