JLG Method and Product

JLG METHOD

Aviral follows the JLG Model. A JLG is an informal group of 5 to 10 members who have come together to for the purpose of availing the loan from MFI on individual basis. The Group members are engaged in Income generating activity, dwelling in the same vicinity and agree to take the liability for repayment of loans of each other in case of default by any individual member of that group.

The process followed by Aviral can be summarised as under.

As the name suggests, in the event of any member not able to repay the EMI of any month or refuses to repay the loan, all the remaining members are suppose to make for the shortfall. This is the mainstay of JLG model. It ensures that all the members take care in knowing each other before forming the group. However in case of default, the company does not use any force/coercive method to recover the loan amount.

All the data related to loan disbursed and delinquencies are to be periodically forwarded to all the Credit Information Companies for their record.

PRODUCTS

Loan Amount Loan Tenure Loan Purpose Terms & Condition
10,000- 30,000 1-2 year For Business and Income Generation
  • Interest Rate: 25.15% Per Annum (Reducing Basis) wef from 01-01-2019
  • Processing Fees: 1% of loan amount plus GST
  • Insurance Charges: 5.1 per thousand per year
  • No prepayment Penalty
  • No Late Payment Charges