Nirmala Sitharaman, the Union Finance Minister informed on Tuesday that banks have sanctioned loans worth rupees 11,168 crore to about two lakh borrowers under the credit outreach initiative.
Under this scheme, banks have been organising special camps across different parts of the country to sanction loans to eligible borrowers as per the prudential norms.
Various banks has even announced festival offers at concessional rates of interest and dropped the processing charges in the festive season.
The Finance Minister's office in a tweet said, "During her review of PSBs in Aug, Smt @nsitharaman had exhorted banks to conduct Credit Outreach Programme in Oct to support revival of economic growth. In line with this, banks have been holding district-wise & sector-wise loan outreach programmes."
The FM office added that the loans under the Credit Outreach Programme are over and above those sanctioned and hand out under the various loan guarantee schemes of centre.
According to the data shared by the Finance Ministry, approximately rupees 6,268 crore business loans were sanctioned to nearly one lakh beneficiaries and vehicle loans worth rupees 448 crore were sanctioned to 5,058 borrowers.
It said that housing loans worth rupees 762 crore were sanctioned to 3,401 borrowers as of October 20.
In a following tweet by FM office informed, "As part of the Govt's nationwide Credit Outreach Programme that commenced on 16 Oct 2021, all PSBs and private banks have sanctioned more than 1.93 lakh loans totalling Rs 11,168 crore through 924 camps held in 405 districts over 3 working days (16-20 Oct)."
Similar initiative by banks were held between October 2019 and March 2021 and has fulfilled all kinds of credit requirements of the RAM sector (Retail, Agriculture and MSME).
The Finance Ministry further informed that rupees 4.94 lakh crore were distributed under the outreach programme.
The union government's Credit Outreach Programme, through co-lending arrangements between banks and NBFCs and the fintech sector that will extend the loans at affordable interest rates to smaller borrowers this year festive season.