Searching for the Best Small Finance Bank? Consider These 4 Options

Posted by John Judge on December 10th, 2020

Since their introduction in 2015, some Small Finance Banks (SFBs) have grown by leaps and bounds. They now offer an extensive range of banking products and services to cater to the banking needs of customers in rural and urban India. Check out this post to know 4 of the top SFBs in India. Content Small Finance Banks (SFBs) are niche banks that have been introduced by the RBI to offer basic banking services to unserved and underserved sections of the society. But since their introduction in 2015, some of the SFBs have grown to the extent that they can now compete with other commercial banks.

Top SFBs now offer a wide range of products and services to help customers experience the best of banking, no matter if they live in rural or urban India. If you’re looking for the top SFB, here are 4 options you can consider-

1. Ujjivan Small Finance Bank

Founded by Samit Ghosh in 2017, Ujjivan Small Finance Bank is one of the most reputed SFBs in India. The bank is headquartered in Karnataka and currently has more than 400 branches and 10,000+ employees to cater to the banking needs of more than 50 Lakh customers.

From savings accounts, deposit accounts to loans such as home loans, personal loans, and vehicle loans, Ujjivan Small Finance Bank offers multiple products and services at highly competitive interest rates.

2. Fincare Small Finance Bank

Fincare Bank was established as Disha Microfin Limited in 1995. In 2015, it received RBI’s approval to operate as Fincare Small Finance Bank. By the end of the financial year 2021, the bank aims to have more than 700 branches across India.

As gold loans are popular in rural India, Fincare Small Finance Bank is known to offer gold loans at highly competitive interest rates to its customers in such areas. Apart from gold loans, the bank also offers home loans, microloans, institutional financing, and NRI banking services.

3. Jana Small Finance Bank

Headquartered in Bengaluru, Jana Small Finance Bank commenced operations under the name Janalakshmi Financial Services in 2008. It was only in 2015 that it was licensed by the RBI to operate as an SFB. Currently, the bank has more than 500 branches in 19 Indian states. The bank offers savings accounts, current accounts, deposit accounts, insurance, loans, and a host of banking services for its business customers. The bank has also recently introduced video KYC for opening savings account online.

4. AU Small Finance Bank

AU Small Finance Bank is also one of the few banks that received an SFB license from the RBI in 2015. The Rajasthan headquartered bank currently has more than 700 banking touchpoints and a customer base of more than 1.8 million.

As one of the best small finance banks, AU Bank offers a plethora of banking products and services, including bank accounts, loans, digital banking, insurance, debit cards, NRI banking, mutual funds, and a lot more. Pre-approved car loans, online shopping offers, and contactless debit cards are some of the latest offerings of this bank.

Which Small Finance Bank is Right for You?

You can consider any of the top licensed SFBs as they’re all governed by the RBI. If you want to pick the best, then select the one that effectively meets your banking requirements. For instance, if you're going to open a savings account or FD/RD, then check the interest rate offered by the bank.

Online banking facility, nearest branch, and customer support are other factors you can consider to make the right decision.