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Micro Finance Loan

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What Are Microfinance Loans?

Microfinance customers are typically under / unbanked individuals or groups who do not have access to traditional financial resources. They are self-employed and typically home-based entrepreneurs. In rural areas, the customers are typically those engaged in small-scale income-generating activities - farming, food processing, trade, etc. Microfinance Loans have played a crucial role in driving financial inclusion in India. Microfinance lenders have done this by providing easy access to formal credit to borrowers in semi-urban and rural areas.

Tata Capital provides easy Microfinance Loans available at attractive interest rates. Avail a loan up to Rs. 1 lakh through a simple process with minimal documentation. Get flexible tenures of up to 36 months and repay your Microfinance loan EMI as per your convenience. Tata Capital offers fast Micro Loan processing and tailored offerings ideal to fund your diverse financing goals.

Disclaimer: Micro Finance Loans are at the sole discretion of Tata Capital Limited (TCL). Terms and conditions apply.

Loan Amount offered

Rs. 5,000 - Rs. 1,25,000

*Excluding TPP charges

Loan Tenure

12-36 months

Processing Fees

1% to 1.5% + GST

Advantages Of Microfinance Loans

Access to quick funds

We offer micro credit solutions to small business owners and entrepreneurs in the underdeveloped parts of India for a sustainable livelihood, and help low-income people in the underdeveloped parts of India.

Collateral-free loans

We offer unsecured micro business loans, wherein you can borrow money without any collateral.

Quick processing

The turnaround time is quick in case of an urgent loan requirement.

Promotes self-sufficiency and entrepreneurship

We help budding women entrepreneurs to be self-reliant

Improved income

These small loans help women borrowers get access to key agricultural inputs such as seeds and fertilizers for increasing crop productivity and generating more income from the market. The micro credit solutions also help customers involved in farming-related and other small activities improve their incomes.

Pragati

Pragati loans are crafted to support economically active women residing in low-income areas, generally involved in small trade and service, agriculture, and cattle farming. While it is not necessary for the customer to have a separate business setup, the Micro Loan is to be used exclusively for income generation purposes. Initially, a Tata Capital customer has to start as a Pragati JLG (Joint Liability Group). Customers with a good track record will be eligible for additional funding.

Key Features

Loan Amount : Rs. 5,000 - TRs. 1,25,000
Type of Loan : Unsecured Group Loan
Tenure : 12 Months to 36 Months
Average Interest Rate: 25.30% p.a.*
Average rate of Interest in the last quarter: 25.30% p.a.*
Processing Fees : 1% to 1.15% + GST
Repayment Frequency: Monthly/Fortnightly/Weekly.
Eligibility: You are eligible for Pragati Loan if you are an Indian National, between the ages of 18-58 years living in rural, semi-urban areas of India.
Your eligibility also depends on the credit history of you and your co-applicants.

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Tatkal

The Tatkal loan is a short term loan offered by Tata Capital to help our existing eligible customers of the Pragati loan by providing emergency funding to meet their urgent and unforeseen needs. The hallmark of the Tatkal loan is it’s quick and hassle free sanction process with a rapid turn around time for disbursement and fund transfer, which allows us to help the customer borrow from us at lightning speed.

Key Features

Loan Amount : Rs. 10,000 to Rs. 20,000
Type of Loan : Unsecured Group Loan
Tenure : 6 months to 12 months. Tatkal Loan will be co-terminus with the existing Pragati loan
Repayment Frequency: Weekly, Fortnightly and Monthly
Eligibility:

a) An existing customer of Pragati loan who has paid minimum 6 EMIs on the existing loan (for first cycle & above)

b) A customer who was new to credit and has an active first cycle Pragati loan who has paid minimum 9 EMIs

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Microfinance Loan Eligibility Criteria

Age between 18- 58

Involved in income-generating activities

How to Apply for a Microfinance Loan?

Visit Our Branch

One of the ways to apply for a Microfinance Loan is to visit one of our country-wide MFI branches and our representatives will walk you through the entire process.

Locate a branch

Contact our Representative

Our representatives visit villages to familiarize themselves with the environment in which they will be working. They identify prospective clientele and explain the purpose and functions to them.

Request a call back

Call us

Applying for a Microfinance Loan at Tata Capital is just a phone call away! Simply contact us at 1800 209 9809 and we will guide you through the process.

Request a call back

What Are the Microfinance Loan EMI Options Available?

Bi - Monthly

Microfinance Loan EMI is a fixed payment made by the borrower to a lender on a specified date, starting 14 days from the disbursement date. EMIs are applied to both the interest and principal components over the tenure of the loan.

Monthly

EMI is a fixed payment made by the borrower to the lender on a specified date of each month.

Weekly

EMI is a fixed payment made by the borrower to a lender on a specified day of each week every month

Why Choose Tata Capital for Microfinance Loans?

With the customer’s individual desires and needs in mind, our team at Tata Capital guides you at every step and offers specific financial solutions.

Tata Capital - A name you can trust

We keep your unique needs at the heart of what we do. Our team guides you at every step to offer customized financial solutions.

Attractive interest rates

Enjoy our competitive Microfinancing Loan interest rates. We give you a tailored borrowing experience so you can repay the microfinance personal loan at your own pace.

Fix anything that’s broken

Over the years, even the best amongst us end up suffering through a little wear and tear. Give wings to your dreams with Tata Capital Microfinance Loans.

Minimal documentation requirements

We ask for minimal documentation for processing your microloan online application. Say goodbye to document hassles and long processing times.

Because you deserve the best opportunity

Why would you want to compromise on any opportunity that is coming your way? Turn it on and make it happen. We are with you with our offerings of microloans online.

We’ve been around for a long time

This means we understand your needs and give you tailored solutions for microfinance in India, enabling you to fulfill your dreams.

Microfinance Loan EMI Calculator

Use our microfinance loan EMI calculator to quickly estimate monthly repayments by inputting the loan amount, tenure, and interest rate. You will see the calculations for EMI, total interest, and overall cost instantly, helping you compare plans and choose affordable options. The tool is fast, user-friendly, and secure, ideal for pre-application financial planning.

Loan amount

₹

₹75,000 ₹35,00,000

Rate Of intrest

10% p.a 19% p.a

Tenure (months)

Select the repayment option

Installments

EMI Amount (Monthly)

*Final amount may vary and it will depend on the final credit approval

Disclaimer: The aforementioned values, calculations and results are for illustrative and informational purposes only and may vary basis various parameters laid down by Tata Capital.

Micro Loan Interest Rate and Charges

The interest rates for a microloan vary based on the lender and borrower profile. The range is outlined in the table below. Make sure you review other charges as well to determine the total loan cost.

Type of charge	Applicable rates
Minimum interest rate	24.25% per annum
Maximum interest rate	25.99% per annum
Average interest rate	25.30% per annum
Processing fees	A one-time charge that is deducted during loan approval to cover administrative and processing costs. 1% to 1.5% + GST
Late payment charges	A penalty is applied to overdue EMIs for delayed or missed repayments. 3% on every missed installment (Annualized penalty of 36%)
Bounce charges	NIL
Statement of accounts	NIL
Foreclosure charges	NIL
Duplicate loan card	NIL
Foreclosure letter charge	NIL

Key Features of Micro Loans

Loan amount: The loan amount usually ranges from Rs. 5,000 to Rs. 1.25 lakh, depending on the borrower’s income and repayment capacity.
Loan tenure: Microloans have flexible repayment periods between 12 months and 36 months, allowing easy installment planning.
Interest rates: The rate of interest typically ranges from 18% to 26% per annum, based on the lender’s policy and the borrower’s credit profile.
Collateral-free: No security or guarantor is generally required for a microfinance loan, making it accessible for low-income and small entrepreneurs.
Eligibility: The loan is open to self-employed individuals, women entrepreneurs, small business owners, and low-income groups engaged in income-generating activities.
Quick processing: Microloans have simple documentation, minimal verification, and fast disbursal, often within 24 to 72 hours.

Documents Required for Micro Loans

To apply for a microloan, you must submit a few essential documents to the microlenders for identity, address, and income verification.

Mandatory documents:

KYC proof: Aadhaar card, PAN card, or voter ID
Address proof: Utility bill, ration card, or rent agreement
Income proof: Salary slips, bank statements, or business income records
Photographs: Recent passport-sized photos
Business details: Registration certificate, GST details, or shop license (if applicable)

Optional documents:

Guarantor details or post-dated cheques for repayment security
Proof of existing loans or credit history (if available)

These documents ensure transparency, verify eligibility, and speed up loan approval for small entrepreneurs and self-employed individuals.

FAQs on Microfinance Loans

Individuals, small entrepreneurs, self-employed people, and low-income groups engaged in income-generating activities can apply for microfinance loans to support small businesses, farming, or livelihood needs.

Microfinance loan interest rates in India generally range from 18% to 26% per annum, depending on the lender, borrower profile, and repayment history. Tata Capital offers an attractive interest rate starting from 24.25% per annum to 25.99% per annum.

Yes, Tata Capital allows you to conveniently apply for microloans online through its website or mobile app with simple digital KYC and minimal documentation.

You will need basic documents like an Aadhaar card, a PAN card, address proof, and income proof for your microfinance loan application. Sometimes, you will need to provide business details or bank statements for verification.

Yes, microfinance loans are typically collateral-free, making them accessible to small borrowers and entrepreneurs without assets to pledge.

Repayment options are highly flexible, with weekly, bi-weekly, or monthly installments designed to suit the borrower’s income flow and business cycle.

Microloan approval and disbursal are quick, often completed within 24 to 72 hours after verification and document submission.

Small-scale enterprises like retail shops, food stalls, tailoring units, handicrafts, dairy, and farming ventures benefit most from microloans for working capital or expansion.