Pre-closure charges: It is 2% of Principal Outstanding if a loan is pre-closed within 1 year of disbursement and 1% of Principal Outstanding if pre-closed after one year but before the maturity date.

The eligibility criteria for various loan products of Equitas are given below:

1. Rs.12,000 or Rs.15,000: For members who have repaid the Rs 10,100 loan without delay or default in the first cycle and for whom 10% of the family income exceeds two installments.

2. Rs.17,500: For members who have repaid the Rs 15,000 loan without delay or default in the first cycle and for whom 10% of the family income exceeds two installments.

INCENTIVE: ( Applicable for Micro Finance Loans only)

1. 1% incentive on the Loan Amount payable half-yearly to the Centre Leader for:

   • 100% attendance of the members for the every Fortnight centre meeting.

   • 100% payments by all members.

   • Applicable for Micro Finance Loans & second cycle loans only.

2. 1.25% Prompt Payment Rebate p.a. for the group members’ payable on completion of repayment of Micro Finance Loans only. Included in the Net IRR.

Additional Micro Finance Loan of Rs.3,000 is offered to all existing customers who have completed one year with prompt repayment.

This product is called ‘Equitas Swarna Mudra’ scheme. Under this scheme, existing customers of Equitas are eligible for buying gold coins under an installment scheme.

This product is called Equitas Vidya Loan and is offered to existing customers of Equitas for funding their children’s term fees.

This product is called Equitas Shiksha Loan and is offered to all existing members who have completed 3 months of track record with the Company for funding their children’s tuition fees in Equitas Shiksha Tuition centre.

This product is called Equitas Gurukul Loan and is offered to all existing members of the Company, who have enrolled their children in Equitas Gurukul Schools at Trichy & Dindugal for funding the entire year’s tuition fees.

The major terms and conditions of the loan products offered by Equitas are given below:

1. Women Members: All JLGs shall be formed comprising of poor women in rural and urban areas and within the boundary of the branch offices.

2. KYC Documentation: As per the KYC Policy of the Company, all members have to provide copies of Ration Card and photo Identity Card for availing the loan products of the Company.

3. Membership Size: The membership of the each JLG shall be 5. In no case, the minimum number of members in a centre is 15 and the maximum number of members shall not exceed 30.

4. Membership Fee: One time membership fee of Rs.50 shall be payable by each member at the time of joining.

5. Centre Meeting: The centre meeting of the JLGs will be facilitated by Equitas staff every fortnight where the installment amount will to be collected by Equitas staff.

6. Joint Liability: The members of each group cross guarantee the loans borrowed by the other members in the same group.

7. Loan Disbursement: All loans are disbursed at the Equitas Branch Offices. After identifying the borrowers with their photograph identity cards in the presence of their Centre Leader, the loans are disbursed by cash.

8. Borrowers shall come in person: At the time of loan disbursement, all members who have applied for loan shall compulsorily be present at the Equitas Branch Office, for receiving the loan amount.

9. Passbooks: A passbook will be issued to the each member detailing the amount of loan, date of installment, principal and interest amounts payable till the completion of loan account, rate of interest and insurance charges.

10. Duration of Loan: The duration of loan will be as per the loan product availed by the customer.

11. Income Generation Program Purposes only: Equitas sanctions micro finance loans only for supporting and enabling the members for undertaking the Income Generation activities. Other loans are for their specific intended purposes alone.

12. Repayment at Centre Meetings: All the members shall repay the loan only at respective centre meetings conducted every fortnightly. Receipt (Collection Sticker) will be issued by the Relationship Officer to the members.

13. Utilization of Loan Funds: The assets purchased / created if any, would be verified by the field risk officer on a random basis.

There is no collateral required except for gold loan. This model is based on the Joint Group Liability. The collateral is social i.e. the members of the group together assure the repayment of the loans.

• ID/Address proof: Voter ID card / Bank passbook copy / ration card / gas bill etc.

• Photo of self and husband/nominee

• Membership application form

• Loan application & sanction form

• Demand promissory note

• Loan passbook

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