Loan fairs for providing credit to be held across 250 districts from 3rd October

The loan fairs are announced by the Indian government that is aimed at providing credit facilities to the retail customers and MSMEs (Micro, Small and Medium Enterprises) due to a slowdown in the demand for loans.

The starting phase of 'Loan Mela' starts on  Thursday, 3rd October 2019 across 250 districts in India. Starting 3rd October, for the next four days, loans will be sanctioned on the spot. Earlier this year, the various public sector banks had decided to undergo an outreach exercise in 400 districts of India.

The Loan Mela will be held across 250 districts across the country to meet the growing demand during the festival season. During the next four days starting October 3, loans will be sanctioned for retail, agriculture, vehicle, home, MSME, education, and personal categories. These loans will be provided on the spot.

All Public Sector banks, including State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), and Corporation Bank have prepared themselves to take complete advantage of the festival season demand.

Among these Public Sector Banks, SBI is the lead banker in almost 48 districts across the country. Likewise, BoB is the lead banker in 17 out of the 250 selected districts in the first phase of the program. Along with the Loan Mela, it is also holding Baroda Kisan Pakhwada during the period of which most of its branches would be focusing on promoting farm loans, as BoB said in a statement.

During the annual performance review of the Public Sector banks earlier this month, these banks had decided to undergo an outreach exercise in the identified 400 districts of India. The private sector banks too later expressed their willingness to join this initiative of organizing a Loan Mela. This is basically a part of the systematic bank reform process through which it is envisioned to bring the banks to the doorsteps of the customers.