::: Arman Financial Services Limited ::: What We Do - Microfinance - Schemes__________________________________________________________________________________________________

What We Do

What We Do

Services from Arman

What We Do


	Microfinance


	-	Methodology

	-	Schemes

	-	Success Stories


	Loans

Arman Financial Services Ltd

Microfinance Schemes

Features of loan products currently offered by Arman

Typical Features	Two Wheeler Loan	Three Wheeler Loan	Used vehicle loan	Personal loan
Purpose	New two wheeler purchase	New three wheeler purchase	Used two wheeler and four wheeler purchase	Working capital, family events etc
Collateral / Guarantee	Hypothecation of vehicle and PDCs / ecs	Hypothecation of vehicle and PDCs / ecs	Hypothecation of vehicle and PDCs / ecs	Guarantor or Collateral Security / PDCs / ecs
Loan term	12-36 months	12-36 months	12-36 months	12-36 months
Loan size	Rs15000-Rs40000 Avg-Rs29,000	Rs50,000- Rs1,00,000 Avg-Rs82,000	Rs15,000-Rs50,000 Avg-Rs25,000	Rs15,000-Rs40,000 Avg-Rs28,000

The company will have a single group loan product with following features and policies

Loan for income generating activities
Loan size	Rs 5,000 to Rs 25,000 (to increase gradually in three loan cycles)
Loan duration	50 weeks
Loan Purpose	Income generating activities like livestock especially for milch animals, petty shop, hawker business etc
Loan Repayment	Installment is paid weekly to the field officers at borrowers place of residence
Borrowers’ profile	Lending to be made to group of 8 to 12 members, preferably women
Guarantee/collateral	No Collateral, Joint liability of group for repayment of each individual’s loan
Rate of interest	24% per annum, calculated on declining loan balance
Membership Fee	Rs 100 per loan agreement
Processing Fee	2.5% of the loan amount

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