LIFE INSURANCE FOR LOANS
This product protects families from financial loss in case a member dies while he or she is still repaying a loan. The Group Term Life Insurance plan is offered to all small batch, individual and MSME loan customers. The insurance amount received is equal to the loan amount, which means it pays off the outstanding balance and also provides extra capital to the borrower’s family. These insurance products are provided in partnership with Bajaj Allianz Life Insurance Company, HDFC Life Insurance and Kotak Life Insurance. It is a mandatory coverage for all loan customers and their spouse. No addition fee is charged from customers for enrolling into this scheme.
Through India Invest Micro Pension Services Pvt. Ltd. Janalakshmi encourages customers to save a small portion of their income in order to safeguard their old age, post-retirement. Customers can save Rs 100, Rs 200 or Rs 500 every month. Micro Pension is a flexible scheme that allows partial premature withdrawal. The fund is managed by the Unit Trust of India (UTI).
It is a voluntary product and cross-sold to the loan customers. A service fee of Rs.100 is levied to customers at the time of enrollment into the scheme and annually for renewal.
|Parameter||Micro pension UTI – RBPF|
|Basic Eligibility Criteria||JFS customers; Customers must be between the ages of 18-55. Members joining the Micro-Pensions product above 53 years of age must be enrolled in the scheme for 5 years. It’s a voluntary scheme|
|Contribution||The customer has the option of contributing Rs. 100, Rs. 200, or Rs. 500 per month for each product.|
|Charges||Enrollment Fee: Rs. 100 (JFS) Annual Service Fee: Rs. 100 (JFS)|
|Rate of return||9-10% p.a. as per historical records|
|Withdrawal||Withdrawal allowed both pre-maturity and post-maturity.|
|Pension Fund Managers||A contribution to the Micro-Pension is invested by the Unit Trust of India in mutual funds|
Livestock Insurance for
Maintaining livestock as a productive economic activity can often be a heavy financial burden for families. Cattle also tend to be associated with high mortality rates. In case an animal dies, livestock insurance (for a livestock loan) secures the loaner and his family. The claim amount pays off the outstanding balance and also provides some extra capital, which can partly offset the cost of purchasing a second animal. This insurance product is offered, with simplified processes, in partnership with Royal Sundaram Alliance Insurance Company.
It is a mandatory coverage for all Livestock loan customers. No addition fee is charged from customers for enrolling into this scheme.
|Customer Segment||Agri Loan Customers|
|Type of Cattles||Cow and Buffalo|
|Sum Insured||Based on market value up to Rs.50,000|
|Premium||4% for 1 year and 7.2% for 2 year coverage|
|Tenor||1yr and 2yrs|
|Coverage||Death of animal due to disease or accident|
|Documentation||Proposal Form along with 3-4 photograph of tagged animal|
To secure the home (residential properties) against the calamities such as earthquake, fire, flood etc., JFS provides home insurance to our Home Loans and EFS customers. This insurance product is offered, with simplified processes, in partnership with Royal Sundaram Alliance Insurance Company.
It is not mandatory for customers to take home insurance through JFS. However, the property should be insured before the loan is disbursed. No addition fee is charged from customers for enrolling into this scheme.
|Customer Segment||Home Loan and MSME customers (For residential property as mortgage)||Term||Up to 20 years|
|Sum Insured||Based on replacement value|
|Premium||Rs.15.01 per Lakh per Year|
|Coverage||Against earthquake, Fire, Flood etc.|
(Fire and Burglary)
To provide an Insurance Cover to Small and Medium enterprise (building, machinery and stock) of our enterprise customers. The cover is provided against Fire, Burglary, Flood etc.
It is not mandatory for customers to take Commercial Insurance through JFS. However, the property should be insured before the loan is disbursed. No addition fee is charged from customers for enrolling into this scheme.
|Customer Segment||MSME customers|
|Term||1 Year Policy|
|Sum Insured||Based on replacement value|
|Premium||Based on Risk Category||Coverage||Against earthquake, Fire, Flood, Burglary etc.|
Badhti Bachat is a robust goal-based savings plan aimed at inculcating the habit of saving among those (in the unorganised sector) who do not have access to traditional savings products. Our team helps customers to define short-term goals and save for these in a systematic way. These goals include saving for a daughter’s wedding, children’s’ education, a family function, purchase of property, or money for a small business expansion. The product is designed for ease and convenience and to suit the needs of a wide variety of people: from small businessmen and traders to daily wage earners and housewives.
- Rs 100(for daily variant)
- Rs. 500(for weekly variant)
A minimum saving amount
per day/week of
- Rs 100(for daily variant)
- Rs. 500(for weekly variant)
Maturity is after one or two years
Flat collection charges of Rs. 100 per
month irrespective of the product variant
Daily and Weekly variants of the product
Product is voluntary for the customer
We have partnered with DCB to offer this product to our customers
- Q3 (Oct-Dec'16): 0
- Overall-Active: 10,350
Prepaid is a convenient way to access funds in cash, make purchases and complete payments using a Visa, Rupay or MasterCard network on any Bank ATM Network or Point of Sale (POS terminal). The Prepaid card is similar to a debit card, but where a debit card is linked to a bank account, here you need to load the amount in advance on the Prepaid card, and the use money at your convenience.
About the Product
In an endeavor to be a ‘one stop shop’ to loyal customers and to offer suitable products and services to meet their financial goals, JFS has introduced a Visa enabled JanaCash Card.
JANACASH CARD was launched by JFS in JAN 2014.
Thought behind prepaid card – Before introducing prepaid card, JFS disbursed loans to their customers in cash and maintained cash at the JC, which involved insurance and cash handling costs, which was very costly and risky for JFS
JFS aimed to disburse the loan amount to the SB loan customers onto prepaid cards through a co-branding tie-up with DCB Bank Limited and Federal Bank Limited. With the use of the prepaid card, the customer could withdraw the loan amount from any Bank ATM or POS at their own convenience.
Benefit of JanaCash card
Customer Benefits of Using a Card
- Customer can access their money any time 24*7 and from anywhere. Prepaid card is secure and safe (PIN requires for usage of card in the ATM & POS.)
- JanaCash card allows customer to reload their card with top-up amount.
- In future JFS customer are able to link their card with Aadhaar number and take benefits of government subsidy.
- In future customer may also make money transfers or remittances from one JanaCash Prepaid Card to another
- Increase customer’s saving opportunities.
- The stringent rules in banks and KYC norms make it difficult for customers to open savings account. The prepaid card serves as a savings account by which the customer is able to perform all credit transactions without having a bank account i.e. load money into the card, ATM withdrawal POS transactions at a place nearest to them.
- Making customer familiar with new payment technology.
- JanaCash cards are issued to all small batch (SB) loan customers at the time of disbursal.
- Cost of card to customer is Rs.230/-.
The model helps JFS source customers for the prepaid cards, providing a huge financial inclusion opportunity for the customers, and move JFS closer to its goal of being an industry initiator. The prepaid card model offers a viable option for banks to offer as the bank will not be incurring Cash Management Services expenses (like it would for a debit card/savings account), even though the customer can still have a card and withdraw/deposit from/into it.
- The card simplifies the cash management system at the branches, and provides better security than cash disbursement. The JanaCash cards enable Janalakshmi to track customer spending patterns for the SB loan program, which would facilitate with rollouts of new products in the future.
- The prepaid card program gives Janalakshmi’s customers knowledge about using ATM’s and other banking facilities and a better rounded financial understanding.
Q3 (Oct-Dec'16) - 348,926
Overall-Active - 6,578,978
National Pension System
National Pension System - Lite (NPS - Lite) is a voluntary, defined contribution pension scheme designed with the intention to secure the future of the people who are economically disadvantaged and who are from unorganized sector.
Janalakshmi Financial Services Ltd has been appointed as an aggregator by Pension Fund Regulatory and Development Authority (PFRDA) to facilitate subscriber registration, transfer of pension contributions and subscriber maintenance functions. New subscription to this scheme has been discontinued from 1st Apr’15 by Govt. of India while collection of the contribution from existing subscribers is continued.
Co-contribution As part of this scheme, Government contributes Rs.1000 to the subscribers pension account for the subscribers who contribute Rs.1000 or more (up to Rs.12000) during the financial year. Only those subscribers are eligible who are not covered under any other social security schemes like PF, Pension. The co-contribution benefit is available up to 2016-2017.
Following charges are applicable
• Annual Maintenance Charges (AMC) – Rs. 50 per Annum.
• Up to 12 free contribution transactions per annum. Rs. 4 per contribution transaction post free limit. The above charges are recovered from the pension account of the subscribers.
A Exit due to death of Customer
Entire accumulated pension wealth would be payable to the
nominee/legal heirs of the subscriber.
B Exit upon attainment of 60 yrs of age
1. Subscriber would be required to invest minimum 40% of accumulated
savings (pension wealth) to purchase annuity.
2. At the time of exit, the effort is to give a monthly pension of Rs.1000. If
40% of corpus is not sufficient to give pension of Rs. 1000 higher
percentage would be subject to annuitisation.
C Exit before attainment of 60 yrs of age
1. Subscriber would be required to invest a minimum of 80 % of
accumulated savings (pension wealth) to purchase annuity. He can
withdraw balance 20%.
2. If the 80% accumulated does not ensure a pension of Rs. 1000 per
month on reaching 60, the percentage invested can be higher.