The second phase of 'Loan Mela' will be held in 150 districts, starting from October 21.
Banks will organise the first phase of "loan melas" in 250 districts starting from Thursday.
An outreach programme initiated by government banks, the "loan melas" are aimed at meeting the demand of borrowers during the festival season.
In a period of four days starting October 3, agriculture, vehicle, home, education and personal loans will be sanctioned to retail customers as well as micro-small and medium enterprises (MSMEs) on the spot.
The second phase of "loan melas" will be held in 150 districts, starting from October 21.
Here are 10 things to know about "loan melas":''Loan melas'' will be held in 's hamiyanas' (tents) and will provide a one-stop destination for MSMEs, small retail businesses and end customers to access all bank services, especially loans in auto, home, personal and business section.These camps will provide ready cash in the hands of consumers, besides gearing the festival season demand.For spreading information, local vendor associations, commercial organizations and chambers of commerce may be engaged,a public sector bank official said.Prudent financial norms and due diligence will be followed by public sector banks while disbursing loans, the official added.In line with the government's Digital India initiative, the "loan melas" will focus on financial inclusion schemes and digital payment methods to encourage consumers and merchants to increasingly shift to these payment modes, the sources said.Banks including State Bank of India (SBI), Punjab National Bank (PNB), Bank of Barodaand Corporation Bank will participate in the programme.Apart from public sector banks, non-banking financial companies, housing finance companies, micro finance institutions, the Small Industries Development Bank Of India (SIDBI) and private sector banks mayalso participate in the scheme, sources said.Last month, the government asked public sector banks to hold "loan melas" in 400 districts to provide credit to desirable shadow banks and retail borrowers.Grappling with six-year low Gross Domestic Product (GDP) growth and a 45-year high unemployment rate, the government is looking to boost creditin a bid to aidliquidity for businesses and create jobs.
On August 30, Finance Minister Nirmala Sitharaman announced a consolidation plan which would result in 12 public sector banks in the system instead of 27, in a bid to strengthen the financial system and push economic growth.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
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