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.
These easy loan providing camps will provide a one-stop destination for MSMEs, the small retail businesses and the end customers to access all the bank facilities, especially loans in auto, home, personal and business sections.
At one level, it is going to help various businesses to get ready for the festive season. It will also help to provide ready cash in the hands of the end consumers.
All the prudent financial norms and due diligence will be followed by the Public Sector Banks while giving the loans, as per a top official of the public sector bank.
Several Awareness camps will be organized in the selected districts to aware the people about the event and how they can avail the loans. For disseminating the information about the event, local vendor associations, commercial organizations, and chambers of commerce have been engaged to spread the message among various merchants and customers, as per one banker.
In association with the government's focus on Digital India, this initiative will focus on financial inclusion schemes as well as digital payment methods in order to encourage consumers and merchants to shift to these digital payment modes, as per the sources.
Apart from the various PSBs (Public Sector Banks), NBFCs (Non-Banking Financial Companies)/HFCs /MFIs/SIDBI and private sector banks can also openly participate in this scheme. The second phase of the program will be held in the other 150 districts and will take place starting between October 21 and October 25, just before the festival of Diwali.
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image source- Military.com