Public sector banks could soon approve home, personal and auto loans in just 59 minutes.
A section of bankers dialed finance minister Nirmala Sitharaman for opening up psbloansin59minutes.com — an insta-lending portal aimed at small businesses — to retail borrowers. The move could spur lending and help boost consumption in a slowing economy. Banks may also raise the in-principle approval limit for business loans on the portal to ₹5 crore from ₹1 crore. Nirmala Sitharaman is meeting industry representatives through the week to discuss revival measures.
Will Key Reforms and Policies will revive the demand in the economy?
Though not an economist, I have seen/read/experienced when Central Banks try to extend ‘free credit’ to masses in order to create a ‘growth’ in the economy.
It fails miserably and the best examples are there for all to see: pre-2007/2008 recession in United States of America (the biggest economy in the world at that time and still sitting as top economic nation on the planet).
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‘Free credit’ is just kicking the can down the road and when it will no longer be kicked, the masses will feel the pain when it hurts the toes/leg trying to do the same and kick the can further down the road.
With no jobs around, output contracting and companies feeling the pinch of debt and 100’s of SMEs shutting down, and thousands moving towards bankruptcy, here is the fix, the Game changer they call it: Borrow and consume. The game is getting interesting, let’s hope to see some action in the retail finance space!!!
Anybody on my network got the 1 cr loan in 59 minutes or knows someone who got the loan. Can you share your experiences? I hv heard many stories of folks who paid the fees but were not found eligible, yet to see a story of success.
India’s economy has been facing a serious headwinds and huge prolonged slowdown for about more than a year. The core sector growth in June has hit the brakes to 0.2%, the lowest monthly growth since May 2015, and weak demand forced many automobile companies to temporarily halt production.
Launched on November 2, 2018 by Prime Minister Narendra Modi, the 59-minute loan portal—which lets businesses apply for instant loans without having to visit banks—has led to 1.3 million loans being sanctioned till July 17, 2019 the finance ministry said in a statement to the Rajya Sabha.