Bank of Baroda has launched a new feature for women, allowing them to easily obtain small loans through UPI. This means that women will have access to overdraft facilities.
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Bank of Baroda: Bank of Baroda has launched a new facility for women, allowing them to easily obtain small loans through UPI. This facility is specifically for women associated with women’s self-help groups (SHGs), and marks the first time in the country that such a credit line has been linked to UPI.
Under this scheme, women with a Jan Dhan Account (PMJDY) can avail an overdraft of up to ₹5,000. Significantly, they can access this money directly from their mobile phones through the UPI app, eliminating the need to visit a bank. They can perform tasks like making payments, sending money, and repaying loans all from their phones.
This facility has been launched in collaboration with NPCI, the Indian Banks Association, and the Deendayal Antyodaya Yojana. Its purpose is to provide easy and affordable loans to rural women, who often face difficulties in obtaining loans from banks.
This will enable women to access money quickly when needed and gradually build their credit record. This will also make it easier for them to obtain larger loans in the future. This initiative is considered a major step towards increasing digital and financial inclusion.
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