Max United Foundation

MICROFINANCE LOAN PRODUCTS

MAX UNITED MICROFINANCE follows Joint Liability Group model and have cent per cent women clients. The Organization lends for Income Generation Activities, Personal Needs, Educational purpose, etc. MAX provides door step delivery of its services through group meetings and it strictly adhere to the RBI/ MFI guidelines.

As per the RBI mandate, all MFIs have to be a member of all credit bureaus and should submit data with respect to lending to its clients on a weekly basis. MAX UNITED is new NGO/MFI and unfortunately we are not member of any credit bureaus yet. But we are trying to join as a member of all credit bureaus before next year ending. The present loan products are given below:

Income Generation Loan (IGL)

Products Attributes	Description / Details
Purpose	To create assets or provide working capital for any lawful income generation activity
Loan Amount	1st Cycle – Rs. 20000/- 2nd Cycle – Rs. 35000/- 3rd Cycle – Rs. 50000/- 4th Cycle – Rs. 60000/- 5th Cycle & above – Rs. 60000 – 1,00,000/-
Rate of Interest	15.00% on flate basis
Collateral / Security Deposit	No collateral / Security Deposit
Processing fee	1% of the loan amount + service tax
Loan Period	up to Rs.20000/- 1 year above Rs.20000/- 2years
Repayment Frequency	Weekly
Moratorium Period	1 Week / According to repayment frequency

Income Generation Loans is our core product through which the credit needs of lack of financially underserved households are met. An Income Generation Loan is provided to individuals in a group comprising a minimum of 5 and a maximum of 7 women. The loans are based on group guarantees. After completion of each cycle or tenor of a loan a customer can avail another loan generally for a higher amount. The loan amount ranges from Rs. 20,000 to Rs. 1,00,000.

Personal Loan / Product Loan (PL)

Product Attributes	Description/Details
Purpose	Consumption / Personal purpose
Loan Amount	1st Cycle - Rs. 10000/- 2nd Cycle & above – Rs. 15000/-
Rate of Interest	15.00% on flat basis.
Collateral / Security Deposit	No collateral / Security Deposit
Processing fee	1% of the loan amount + service tax
Loan Period	up to Rs.15000/- 1 year
Repayment Frequency	Weekly
Moratorium Period	1 week - according to repayment frequency

The product loan product is designed to the group members who have completed six months under MAX UNITED microfinance programmes to fulfil their personal needs like purchasing home appliances, mobiles, other such electronics and electrical items, repay another debts and any other personal expenses. This product is covered to all existing small batch loan customers with a ticket size of Rs. 10,000 –to15,000 for a period of 12 months.

Income Generation Loans is our core product through which the credit needs of lack of financially underserved households are met. An Income Generation Loan is provided to individuals in a group comprising a minimum of 5 and a maximum of 7 women. The loans are based on group guarantees. After the completion of each cycle or tenor of a loan, a customer can avail of another loan generally of a higher amount. The loan amount ranges from Rs. 20,000 to Rs. 1,00,000.

Education Loan (EL)

Product Attributes	Description/Details
Purpose	For the educational purpose of group members’ children for meeting tuition fee and non tuition fee.
Loan Amount	Up to 10thStd - Rs. 5000/- For Plus 1 & 2 - Rs. 10000/- Above +2/College - Rs. 15000/-
Rate of Interest	15.00 % on flat basis
Collateral / Security Deposit	No collateral / Security Deposit
Processing fee	1% of the loan amount + service tax
Loan Period	Up to 15000 – 1 year
Repayment Frequency	Weekly
Moratorium Period	1 week / according to repayment frequency

The education loan product is designed to member’s children who are going school for their tuition fee, admission fee, exam and library fee, purchase of text books, uniforms and other school-related materials. This product is covered to all existing small batch loan customers with a ticket size of Rs. 5,000 – 15,000 for a period of12 months.

Housing Loan (HL)

Product Attributes	Description/Details
Purpose	For extension, repairs and renovation of existing house
Loan Amount	From Rs 50,000 to Rs 60,000
Rate of Interest	15 % on flat basis
Collateral / Security Deposit	No collateral / Security Deposit
Processing fee	1% of the loan amount + Service tax
Loan Period	24 months
Repayment Mode	Weekly
Moratorium Period	1 Week

Many of our customers construct homes slowly and ‘incrementally’ over time, in keeping with their needs and the availability of resources. The home improvement loan speeds up this process of minor improvements, extensions, repairs and renovations thereby improving the standard of living of our customers. The product is covered to customers with a proven credit history after they have completed 12 months in a small batch loan structure. The loan amount ranges from Rs. 50,000 to Rs. 1,00,000 for a tenure of 24 to 36 months.