General Loan

The general loan is a loan with monthly/quarterly repayments. Clients make monthly payments mostly during center meetings. A center is a meeting place, where group members perform their financial transactions such as repayment, withdrawals, deposit etc. Generally a group is composed of five members. The interest rate is 15% on declining basis if the clients pay the installment in center meeting. Before a woman can become member of NULBSL, and hence eligible for loans, she must complete the compulsory group training (minimum 7 days) and pass the group recognition test.

Agriculture Loan

This loan is used for seasonal opportunities like purchasing and selling of agricultural products and animals in festival seasons and is accessible to clients who have successfully completed one cycle of the general loan with good repayment performance.

Housing Loan

NULBSL uses a very specific targeting strategy to ensure that all first-time clients are very poor. As one of the targeting criteria is the absence of cement walls or ceiling in the client’s house, there is a strong demand for various types of housing loans. To access the housing loans the clients must have maintained strong credit discipline in the previous years, have improved economic condition from previous loans, and be willing to contribute at least 20 percent equity (10 percent cash and 10 percent in-kind). NULBSL charges an interest rate of 15 percent on a declining balance with monthly repayments.

• House Construction Loan: available to clients who meet the above requirements and have taken general loan. Members generally construct a new house on their current property with this loan.
• House Repair Loan: available to clients who meet the above requirements and have completed the first loan cycle of the general loan. This loan is used to make capital improvements like replacing a roof on a current house.
• Homestead Purchase Loan: available to clients who meet the above requirements and have borrowed general loan. This loan allows members to purchase a small amount of land.

The loan size, loan term and other conditions for housing loans are as follows:

Foreign Employment Loan

This loan is used for the family member of the client to go abroad for foreign employment. NULBSL offers this loan to those clients who have utilized General loan with good repayment performance. This is collateral based loan.

Microenterprise Loan

The microenterprise loan was introduced in mid-July 2000. This loan targets graduates of collateral free loans. The clients eligible for this loan must have taken General Loan, maintained strong credit discipline, have improved economic condition from previous loans, be willing to contribute at least 20 percent equity (10 percent cash and 10 percent in-kind), submit collateral, and demonstrate an ability to operate a micro-enterprise. The loan size, term and other conditions for this loan are as follows: 

Energy Loan

This loan is used for manufacturing bio gas, Solar plant As well as Inverter purees. NULBSL offers this loan to those clients who have livestock and have utilized General loan with good repayment performance. The loan can be given with collateral and without collateral.

Education Loan

This loan is used for the children of the client to study and get degree of technical and vocational education. NULBSL offers this loan to those clients who have utilized General loan with good repayment performance. This is collateral based loan.

Emergency Loan

This loan is used to cope the emergency situation happens to the client due to natural calamities. NULBSL offers this loan to those clients who have affected by natural disasters.

Mobile Loan

We have started the digital passbook android application which provides details of loan, savings, center meeting dates etc. in the client’s smartphone.In order to make sure that every client can have the opportunity to use the digital passbook through a smartphone we are offering the mobile loan product to our valued clients.

Business Rehabilitation Loan

The COVID-19 pandemic that has shook the whole world has also impacted the businesses and livelihood of our members. Many have had to close their business completely during the lock-down imposed by the government to suppress the spread of n-COV virus. Those members who were impacted during the lock-down period are in need of working capital and funds to get their business back on track. To address the same, Nirdhan has started Business Rehabilitation loan to our existing loan clients.

Business Expansion Loan

A Business Expansion Loan is a type of financing that enables a company to grow and scale its operations. These loans are typically used to invest in new equipment, hire additional staff, open new locations, or expand product lines. Businesses often seek expansion loans when they have proven their profitability and want to seize opportunities for growth. Lenders may require a solid business plan and financial projections to evaluate the feasibility of the expansion. These loans can come from banks, credit unions, or alternative lenders and are structured with varying terms and interest rates depending on the borrower’s creditworthiness and the lender’s policies. Business Expansion Loans can be a strategic tool to take a company to the next level and increase its market presence. Nirdhan has started a Business Expansion Loan to our existing loan clients.