VLBS has a range of loan products both non-collateral and collateral. The following are the loan products that VLBS is offering now are,
- General Loan – This loan will be given to the members as per their need and request on group guarantee basis. The maximum size of the loan would be Rs 5,00,000. However, the ceiling of loan size will be fixed by office periodically. 1.5% service and 15% interest is charged on this loan. Loan is provided for any productive sector including agriculture.
- Emergency Loan – Emergency loan will be given for emergency propose, e.g. medical purpose, accident, death of members’ family member, natural disaster and so on. The maximum loan amount for the purpose will be Rs. 10,000 and the duration will be six months. 15% interest will be charged on such loan.
- Seasonal Loan – The loan is basically for working capital for vender types business of the members. The loan size will depend on the type of business and a maximum of 50,000. This can be provided to the member as second loan. Interest rate is 15% and 1.5% service charge will be applied too.
- Alternative Energy Loan – The product is designed to promote renewable energy and can be provided as a second. The amount is max Rs 1,00,000 and interest rate is at 15% on diminishing balance.
- Micro Enterprises Loan – This is relatively bigger size loan and the amount will be based on project. This is collateral based loan and business plan for the project is mandatory. Maximum Loan size for such loan is Rs. 1500,000 but the loan ceiling will be fixed by the office periodically. The duration of the product will be maximum of 4 years and interest will be 15% Service charge will be applicable for this loan too.
- Foreign Employment Loan – Foreign employment loan will be provided to the person who want to go aboard for foreign employment. This is a collateral based loan and similar to micro enterprise loan. All conditions of micro enterprise loan apply to this loan too.
- Education Loan – Education loan is provided for the technical and vocational education of members and their close family members. All conditions of micro enterprise loan apply to this loan too.
- Home Loan –This is a collateral based loan and will be given to the members for house making purpose. at least 3 years of association is required to be eligible to get this loan. Ceiling of the loan size will be set by office. The duration of the loan will be for a maximum period of four years and other conditions are as per MEL.
- Individual Business Promotion Loan – The product is designed to provide loan to the non-members. The max size of the loan is Rs. 300,000. All other conditions of the loan are mililar to micro enterprise loan.