• To whom is it offered to?

Rural houselholds

• Amount

Upto Rs. 1 lakhs

• Interest rate

Lies between 4 - 7 percent

The most important feature of this kind of a loan rendered in India is that there is no need for a security deposit in these loans.

The main aim of providing this kind of a loan from the governmemnt’s side is that they want to render the benefits and support to the rural households that is the people who has a lesser or unstable source of information. Understanding the need of these income class of people, unstable income, less income, incapability to meet the demands and to opt for loans for several reasons, the micro credit schemes have been provided by the government.