Loan: The purpose of this move of the government is to promote loans among retail borrowers and small businessmen during the festive season.
During now coming festival season people simply sitting home loan ( Loan will). The government is going to take some steps to promote private consumption and economic growth. Finance Minister Nirmala Sitharaman loan (in public sector banks to announce that the past festive season Loan will be held) Fair. This move of the government is aimed at promoting loans among retail borrowers and small traders during the festive season.
In September 2019, Sithraman asked lending institutions to reach out to customers and show their willingness to lend during the festive season. For this, loan fairs were organized in 250 districts to provide loans. Despite the slow demand, the government has decided to bring back the lending programme. After the damage caused by the Kovid epidemic in the country, the government is increasing spending on infrastructure projects to accelerate the economic recovery.
Distribute loans to small businesses as well as farmers
On August 25, Sitharaman had said that the government has asked banks to extend loans to those who want to borrow to maintain the momentum of the stimulus . The Finance Ministry said that in the previous round, PSBs disbursed loans worth Rs 2.39 trillion to non-bank lenders, large and small businesses as well as farmers in November and Rs 2.52 trillion in October, totaling Rs 4.91 trillion.
According to Sitharaman, the credit outreach in every district of the country is expected to resume in October 2021. He said that he was specifically talking about the loan requirements of small and medium businesses. Banks have shown speed in reaching out. The government has asked banks to proceed with credit outreach from October.
Loan demand expected to pick up
Bankers have seen a lull in demand and strong credit underwriting analysts believe it is a mix of the same and banks’ reluctance to lend. However, banks expect the demand for loans to pick up when economic activities resume. The Finance Minister said that he has also asked the banks to look into the loan requirements of the sunrise areas.
