Why ULIP mis-selling has become rampant ?
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During the ongoing festive season, banks, both in the public sector and the private sector, have sanctioned loans worth Rs 11,168 crore through a credit outreach campaign, says a report. Banks sanctioned loans through 924 camps hosted in 405 districts from October 16-20 as part of the government’s nationwide credit outreach initiative, Finance Minister Nirmala Sitharaman tweeted. As many as 193,000 borrowers availed of the bank loans.
These loans are in addition to those approved and granted under different federal loan guarantee programmes, such as the Emergency Credit Line Guarantee Scheme, the Business Standard reported.
Over 100,000 applicants used the highest sums, totalling Rs 6,268 crore, as business loans. Agriculture loans worth Rs 1,874 crore were next, with 62,616 borrowers taking availing the loan.
Credit outreach programme
During the programme, housing and automobile loans totalled Rs 762 crore and Rs 448 crore, respectively.
Jammu & Kashmir received the most loans, totalling Rs 3,033 crore, followed by Uttar Pradesh (Rs 1,353 core). Loans of Rs 935 crore were approved in the Andaman and Nicobar Islands, Rs 874 crore in Gujarat, and Rs 869 crore in Odisha.
Sitharaman had ordered banks to execute a credit outreach initiative in October to promote the resurgence of economic growth during the PSB review in August.
The Centre has also directed PSBs to focus on financial inclusion, enhance pension and insurance coverage, and employ financial technology (fintech) to give credit to borrowers through co-lending arrangements over the Christmas season.
The Finance Minister’s Office also posted images from Loan Outreach Programmes held in Punjab’s Hoshiarpur, Telangana’s Warangal, Bihar’s Nalanda, and Chhattisgarh’s Dantewada.
Credit Growth
For the first time in FY22, credit growth turned positive year-to-date (YTD) in September.
According to data from the Reserve Bank of India (RBI), bank lending increased by Rs 7,283 crore until September 24, compared to a 1% decrease (or Rs 99,280 crore) in the same time last fiscal year (2020-21). As of September 24, outstanding bank credit totalled Rs 109.56 trillion.