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Belstar Microfinance

Belstar Microfinance helps poor communities to establish small businesses in the society. The beneficiaries include fishermen, artisans, farmers, small entrepreneurs, deprived communities etc.

Getting access to credit, sometimes, becomes difficult even for a salaried or self-employed professional. Imagine, how would a poor un-employed individual get a loan amidst enormous banking formalities? A large segment of people who live under poverty find it hard to get finance from established lending institutions. As the country aim for an inclusive growth at all sectors, the provision of micro credit is certainly a powerful tool that will bring financial inclusion.

Advantages and Features of Belstar Microfinance

  • To empower poor women and their livelihood
  • To improve the living conditions of the marginalised people
  • To fund the small and micro business entrepreneurs
  • Loan for low-cost house building
  • Pension scheme for workers from the unorganised sectors
  • Insurance scheme for the poor

Belstar Microfinance Products and Services

Belstar Microfinance provides to poor men and women the following products and services.

Microenterprise Loan

People who are looking to start up a small business or improve the existing micro enterprise can avail a loan for up to INR 15,000 per member, under this scheme. The loan can be availed individually or together as a group. The repayment tenure is up to 12 months at the interest rate of 24%. The borrower gets one month of moratorium period and 1% of the loan amount is charged as processing fee.

Sanitation Loan

Focusing on access to clean water, hygiene and sanitation, Belstar Microfinance provides loans to women to improve the living conditions. The credit is provided at affordable interest rates for women to help their family live with a better sanitation. This product facilitates construction of toilets, installation of water pipes, hand borewell, water purifier etc.

The loan amount could range between INR 2000 to INR 10,000 at 25% of interest rate. The repayment tenure is up to 12 months.

Belstar Student Education Loan

Students who are in need of financial support can avail maximum of INR 20,000 at 25% of interest rate. The loan can be repaid in 12 months and 2% of the loan amount is charged as processing fee.

Small and Medium Enterprise Loan

Individuals who want to start up small and medium enterprises can avail microfinance up to INR 75,000 in the first cycle at 24% of interest rate. The loan can be repaid in 30 months and 1% of the loan amount is charged as processing fee.

Consumer Goods Loan

To purchase materials or goods for household needs, the borrowers can get a loan from Belstar Microfinance for up to INR 3000 per member. The loan can be repaid in 10 months. The interest rate is 24% and 1% of the loan amount is charged as processing fee.

Belstar Microfinance Location

To apply for a loan with Belstar Microfinance, you can contact them at their branches or the head office located in Tamil Nadu.

Corporate office Address

New No.33, Old No.14, 48th Street,

9th Avenue, Ashok Nagar,

Chennai- 600083

Tamil Nadu, India

You can also reach them out to register your feedback, complaint, grievance or query at bifpl(at)belstar(dot)in.

Grievance Redressal Mechanism at Belstar Microfinance

Belstar Microfinance aims to provide resolution to their customers in a fair and timely manner. All the passbooks are provided with the telephone number of branch managers in order to contact them for any query and complaints.

Customers can also call the 24X7 toll-free number 18001027049 for registering any complaint or grievances.

If the grievance is not redressed within 15 working days, it can be escalated with the Grievance redressal officer.

What Is Microfinance?

Microfinance is a type of banking service that is provided to unemployed or low-income individuals or groups especially people who have no access to credit in the formal banking system. Microfinance is an alternative to banks for people who live in remote villages of the country. The goal of micro credit companies is to provide a financial opportunity to poor people to become self-supportive and to those who did not have to avail formal credit. While microfinance is concentrated in the rural regions, it is also prevalent in urban poor, who have continued to be a segment that has been neglected by the organized form of banking.

Microfinance, an Alternative to Banks

Though India is experiencing a rapid growth at all sectors, there are still a certain percentage of people who are not covered by the formal banking system. Firstly, most of these people do not have a bank account and getting a loan from bank is even more a tough task.

Banks demand a steady source of income, worthy collateral, credit score etc. to provide a loan. People who have none of these have no chance of availing a credit to become self-supportive. More importantly banks require authenticated documents like ID proof, address proof, PAN, Aadhar card, proof of continuous employment which is not easily available with the segment that does not have much or any of the above documents required. These documents form the bulk of the qualifying criteria, which if an applicant does not meet will be rejected for a loan. Microfinance in India is addressing this need of the people.

Microfinance, identifying, small entrepreneurs come forward to uplift their lives by providing micro credit within their repayment capacity. The Microfinance companies conduct camps at remote villages and some urban pockets and offer financial assistance.

Who Are the Beneficiaries of Microfinance?

The established lending institutions generally cover salaried or self-employed professionals who have a steady source of income or work in an organised sector. Microfinance benefits the people who are involved in profession such as fishery, artisans, constructions works, vendors, small entrepreneurs etc. These individuals generally work in unorganised sectors and live in remote villages or slums in urban areas.

How Does Microfinance Help?

Economically weaker section of people get access to micro credit to enhance their lifestyle in several ways. With varied products from the Microfinance companies, the borrowers can use the funding for start a small business, build a low-cost house, get sanitation facilities etc.

Microfinance companies generally work through self-help groups in the rural and urban localities to provide the financial assistance to economically deprived people.

How Can Indians With No Credit History Get Loans and Credit Cards?

CreditMantri, helps individuals who are otherwise unable to get credit in any form through formal banking system. The first-time borrowers who do not have a credit score or collateral can use CreditMantri platform to explore lenders who are willing to lend to them based on other criteria.

CreditMantri works with multiple lenders which include leading banks and NBFCs to also develop special products like small ticket loans which are able to provide such applicants a loan even with no credit score, a bad credit rating and with negative issues.

About Belstar Microfinance

Belstar is one of the popular Non-Banking Financial Corporations (NBFC – MFI) based out of Chennai in Tamil Nadu. It is a subsidy of Muthoot Finance Ltd. Poverty alleviation and women empowerment are the key areas where the company helps the marginalised section to become self-sufficient through their credit services.

Frequently Asked Questions About Belstar Microfinance

1. Who can avail credit from Belstar Microfinance?

People who are not covered by formal banking system, living in urban slums or remote villages can avail micro credit from Belstar Microfinance.

2. For what purposes the micro credit is offered by Belstar Microfinance?

Belstar Microfinance is provided for the purpose of micro business units, low-cost house building, construction of toilets, setting up irrigation system, student finance and generating income for widows, single mothers, unmarried women, person with disability etc.

3. What is the maximum amount of loan you can get under Belstar Microfinance?

The loan amount is disbursed as per the scheme and repaying capacity of the borrower.

4. Does Belstar Microfinance provide micro credit only for women borrowers?

No, the micro credit is provided for men, women and third gender, especially for individuals who have no access to financial help through formal banking system.

5. Are there insurance benefits available for Belstar Microfinance borrowers?

Yes, the borrowers are covered under insurance benefits.

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