A closer look at the Arogya Dhara loan
With a portfolio of over Rs.5 Lakh crores, it is evident that microfinance lending is now increasingly becoming an option for people who want to borrow money in India. Such mortgages are specially targeted at individuals in need who have no access to conventional banking services. Microfinance institutions provide microfinance business loans and group loans that are designed to meet the particular needs of those borrowing the money. From setting up a business to building essential infrastructural upgrades, microfinance loans are playing a big role in both urban and rural India.
Let’s a take a closer look at the different types of microfinance loans and what purpose are they designed for.
What are the Types of Micro Finance Loans in India
In India, there are different types of microfinance loans available. Let's take a look at the four most common types:
1. Micro Loans
Micro loans are small loans that are typically less than Rs. 80,000 and have a tenure of 24 months. These microfinance business loans are designed for people who need quick access to credit for small expenses.
2. Micro Enterprise Loans
Micro enterprise loans are larger loans that are typically up to Rs. 3 lakh and have a tenure of 36 months. These loans are designed for people who want to start or expand a small business.
3. Arogya Dhara (Wash Loans)
Arogya Dhara loans are micro loans that are designed for people who want to build sustainable facilities for safe water and sanitation in villages. The loans are up to Rs. 30,000 and are the first step towards basic infrastructure development.
4. PM Svanidhi Loans
PM Svanidhi loans are provided under the PM Svanidhi scheme, an initiative by MOHUA under GOI. These micro business loans are up to Rs. 10,000 and are designed to help small businesses get off the ground again.
One of the India’s most important objectives is to provide water, sanitation andhygiene to all parts of the country. Therefore, among these microfinance loans, the Aarogya Dhara loan is considerably the most crucial one. So, let’s take a closer look at what is the Aarogya Dhara loan.
What is Aarogya Dhara (Wash Loans)?
As mentioned earlier briefly, Arogya Dhara loans are micro loans that are designed to provide access to credit for building sustainable facilities for safe water and sanitation in villages. The loans are provided by banks like Unity Small Finance and are up to Rs. 30,000.
The benefits of Arogya Dhara loans are many. One of the benefits is that they help in building sustainable facilities for safe water and sanitation. This, in turn, helps in improving the health and well-being of the people living in the villages. Another benefit is that it is the first step towards basic infrastructure development. The loans help in promoting sustainable development in villages, which is essential for the overall progress of the country.
Who Can Apply for Aarogya Dhara (Wash Loans)?
If you are interested in applying for an Arogya Dhara loan, you will be happy to know that the eligibility criteria are quite broad.
• Business facilitators
• NGOs
• Panchayat Raj Institution (PRI)
• KrishiVikasKendra (KVK)
• State Agriculture University (SAU)
• Agriculture Technology Management Agency (ATMA)
• PACS
• Other co-operatives
• MFIs/MFOs and JLPI
Individuals and organisations of all these categories and more are all eligible to apply for the loan.
Documents Required to Apply for Aarogya Dhara (Wash Loans)
To apply for an Arogya Dhara loan, you will need to provide the following documents:
• Introduction form
• Application cum appraisal form
• Letter of Guarantee
• Joint liability guarantee
• Mortgage deed
• Letter of general lien and setoff
• CIBIL-undertaking letter from borrower
Conclusion
In conclusion, microfinance loans like the Arogya Dhara loan are a beneficial tool for women. They provide access to credit for building sustainable facilities for safe water and sanitation in villages, which is essential for the overall progress of the country. The loans also help in promoting sustainable development in villages and improving the health and well-being of the people living in these areas. With a little bit of effort, you can get the financing you need to build a better future for yourself, your family, and your community.
FAQs
1. What is a Microfinance loan?
A microfinance loan is a small loan that is given to individuals who do not have access to traditional banking services.
2. Who is eligible to apply for an Arogya Dhara loan?
Individuals, NGOs, Panchayat Raj Institutions, Krishi Vikas Kendra, State Agriculture University, Agriculture Technology Management Agency, PACS, and other co-operatives are eligible to apply for an Arogya Dhara loan.
3. What is the maximum loan amount for Arogya Dhara (Wash Loans)?
The maximum loan amount for Arogya Dhara (Wash Loans) is up to Rs. 30,000.
4. What documents are needed to apply for Arogya Dhara (Wash Loans)?
The documents required are an introduction form, application cum appraisal form, letter of guarantee, joint liability guarantee, mortgage deed, letter of general lien and setoff, and a CIBIL-undertaking letter from the borrower.
