Honest borrowers for easy loans: Government

NEW DELHI: Honest borrowers will find it easier to obtain loans from public sector banks (PSBs) as a result of the reforms undertaken, Financial Services Secretary Rajiv Kumar said, saying there would be a premium on lending. ‘integrity.
The government this week announced a series of banking sector reforms and said it would inject unprecedented Rs 88,139 crore into 20 PSBs by March 31 to boost lending and boost growth.
Announcing the reforms, Finance Minister Arun Jaitley said strict standards for disbursing large-value loans had been set, with strict monitoring of large defaulted debtors and mandatory reporting of loans over 250 crore. rupees in the event of breach of an undertaking.
PSBs have been reeling from non-performing assets (NPAs) or bad debts, which total around Rs 8 lakh crore and have hampered lending, which has had an impact on growth.
“One of the main goals of the reform process announced by the government is to emphasize the integrity of the borrower and to make needs-based financing easy and hassle-free or for genuine and honest borrowers.” , Kumar said.
In addition to various fintech tools, he said, the GST return filed by anyone who gives banks a fair idea of ​​cash flow.
This allows banks to decide on sanctioning loans, Kumar said, adding that rigorous due diligence and cash flow separation would ensure the safety and security of sanctioned loans.
He said special attention will be given to micro, small and medium enterprises (MSMEs), financial inclusion and job creation.
To facilitate access to finance for the MSME sector, it was decided that they would apply online for loans which would be 100% automated and that the decision making would be tracked at every step.
The decision regarding the loan application must be finalized within 15 days for the online proposal made through Udyamimitra.com.
As part of the government’s willingness to finance unfunded funds, banks would also focus on improving their exposure to MUDRA and Stand Up India. Since the launch of Mudra Yojana by Prime Minister Narendra Modi in April 2015, banks have paid over Rs 3.80 lakh crore to more than 8.90 crore beneficiaries.

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