Service Details

Group Loans are a powerful tool for providing financial support to individuals who may not have access to traditional banking services. These loans are typically offered to small groups of individuals who collectively take responsibility for the repayment. Clear Credit’s Group Loans are designed to support communities, self-help groups (SHGs), and individuals in rural and urban areas by offering easy access to credit.

At Clear Credit, we believe in the power of collective financial empowerment. Our Group Loans allow individuals, especially women and underserved communities, to take charge of their financial future by accessing affordable loans to start or expand small businesses, manage household needs, or pursue educational opportunities.

Why Choose Clear Credit for Group Loans?

• Collective Responsibility: Group loans leverage the collective responsibility of the group, making it easier for individuals without formal credit history to access loans.
• No Collateral Required: These loans are unsecured, meaning you don’t need to provide any collateral to access credit.
• Flexible Loan Amounts: Borrow as per the group’s collective needs, with loan amounts ranging from ₹20,000 to ₹5,00,000.
• Empowering Women: A significant portion of our group loans is targeted towards women-led groups, promoting gender equality and financial independence.
• Simple Process: Our group loans come with minimal documentation and fast approvals, ensuring that communities get access to funds without delay.

How Group Loans Work

1. Forming a Group: A group of individuals (typically 5 to 10 people) come together to apply for the loan.
2. Loan Application: The group collectively applies for the loan, with each member agreeing to be responsible for repayment.
3. Loan Approval: Once the application is approved, the loan is disbursed to the group.
4. Collective Repayment: The group is collectively responsible for repaying the loan in regular installments.

Eligibility Criteria for Group Loans

To qualify for a Group Loan, the following criteria must be met:

• Group Size: The group must consist of a minimum of 5 and a maximum of 10 members.
• Group Cohesion: The group members should have a history of working together or belonging to a self-help group.
• Credit History: No formal credit history is required for group loans.

Documents Required for Group Loans

• Group Registration: Self-help group registration documents (if applicable).
• Identity Proof: Aadhar card, PAN card, or voter ID for each group member.
• Address Proof: Utility bills, rent agreements, or government-issued documents for each group member.
• Photographs: Passport-size photographs of all group members.

Interest Rates and Fees

Clear Credit offers competitive interest rates for Group Loans, ensuring affordability for communities:

• Interest Rate: Typically ranges from 12% to 15% per annum, depending on the loan amount and repayment tenure.
• Processing Fees: 1% to 2% of the total loan amount.
• No Collateral: These loans are unsecured, requiring no collateral for approval.

Benefits of Group Loans

1. Financial Inclusion: Group loans provide access to credit for individuals who may not have a formal credit history or bank accounts.
2. Empowering Communities: By lending to groups, we promote financial independence and entrepreneurship, especially in rural and underserved areas.
3. No Collateral Required: These unsecured loans don’t require any assets to be pledged, making them accessible to a wide range of people.
4. Flexible Repayment: Group loans offer flexible repayment options, ensuring that each member can contribute based on their capacity.

Use Cases for Group Loans

• Small Business Funding: Group loans can be used to start or expand small businesses such as tailoring, handicrafts, agriculture, and retail shops.
• Agricultural Needs: Farmers can use group loans to purchase seeds, fertilizers, or farming equipment, boosting productivity.
• Household Expenses: Group loans can help manage significant household expenses, such as medical bills, school fees, or home repairs.
• Education: Use group loans to finance children’s education, covering tuition fees, books, and other educational expenses.

How to Apply for a Group Loan

1. Form a Group: Gather a group of 5-10 people who share a common financial goal or need.
2. Submit Application: The group applies for the loan collectively at a Clear Credit branch or online.
3. Submit Documentation: Provide identity, address, and group registration documents for verification.
4. Loan Approval: Once approved, the loan amount is disbursed to the group.

Repay Collectively: The group is collectively responsible for repaying the loan through regular instalments.