Why Aren’t Investors Interested in Ujjivan Small Finance’s 18% Guaranteed Return?

In a financial world filled with uncertainty and volatility, an investment opportunity promising an 18% guaranteed return should ideally set the market abuzz. However, the recent offering by Ujjivan Small Finance Bank has raised eyebrows as it seems to have attracted surprisingly few takers. This intriguing scenario warrants a deep dive into the reasons behind this apparent disinterest in what appears to be a highly lucrative prospect.

Unraveling Ujjivan’s 18% return offer, examining factors and challenges affecting its reception in this in-depth exploration.

Understanding Ujjivan Small Finance Bank

In India’s microfinance market, Ujjivan Small Finance Bank has become a major player. Ujjivan was first established in 2005 as a microfinance organization with the goal of meeting the financial requirements of low-income people and small companies. The organization has grown over time into a full-fledged small finance bank, providing a comprehensive range of financial products and services to a broad customer base.

ujjivan small finance bank

The 18% Guaranteed Return OfferUjjivan Small Finance

The 18% guaranteed return offer by Ujjivan Small Finance Bank stands out in a low-interest environment for traditional savings options. On the surface, an 18% return appears highly attractive, especially when compared to the modest returns offered by other financial instruments.

Factors Contributing to the Lack of Interest

Despite the seemingly lucrative nature of this offer, several factors may explain why there have been limited takers:

1. Risk Perception

Investors often view high returns with skepticism, as they are commonly associated with higher risks. Ujjivan Small Finance Bank may not have been able to convince potential investors that the 18% return is guaranteed without any underlying risks.

2. Lack of Awareness

Financial products, especially those from smaller institutions, may struggle to gain widespread recognition and acceptance. Many potential investors may simply be unaware of Ujjivan’s offer.

3. Regulatory Concerns

The RBI & other regulatory bodies have implemented stringent regulations to protect consumers and maintain the stability of the financial sector. Investors may be cautious about investments from institutions that they perceive as having a higher regulatory risk.

4. Market Sentiment

Market sentiment plays a significant role in investment decisions. If the overall economic outlook is uncertain or negative, investors may be hesitant to commit to long-term investments, even with attractive returns.

5. Maturity Period

The 18% guaranteed return may come with a longer lock-in period or maturity date, which may not align with the short-term liquidity needs of potential investors.

6. Competition

The financial market is highly competitive, with numerous investment options available to individuals and institutions. Investors may have chosen alternative investments that they believe offer a better risk-return profile.


While Ujjivan Small Finance Bank appears appealing, investment choices hinge on factors like risk perception, market conditions, and regulations. The lack of takers for this offer should not be taken as a sign of its inherent quality or lack thereof. It underscores how investors prioritize diverse factors in financial decisions, and an investment’s success hinges on effectively addressing these aspects.