A Mobile Micro Loan factory (MMLF) has been launched by Bank of Baroda (BoB) in Sultanpur district of Uttar Pradesh.
The launch has been denominated to be a part of the financial inclusion drive of the bank. The mobile lending unit would focus on Self Help Groups (SHGs) so that they are able to receive credit easily and at low interest rates. Through this these entities would not have to succumb to non institutional lending from money lenders.
The bank has also launched a Financial Literacy and Credit Counseling (FLCC) centre at Amethi. This center would have a prime aim of advising people on their financial requirements. This way the bank has put a commendable step forward towards spreading financial literacy in the unbanked regions of the country.
These MMLF and FLCC are the second ones to be installed in UP after Rae Bareli.
"We are taking all steps to enable the people living in rural areas avail of easy credit to save them from falling into debt trap due to ignorance of various financial products available in the market," BoB executive director N S Srinath said.
He added that the State Level Bankers' Committee (SLBC) has set up an objective of achieving total financial inclusion of the villages of UP having a population of more than 2000 in the year 2010-11.
The Finance Minister has also proposed in the Union Budget 2010-11 that the banks should aim at reaching the unbanked regions of the country and lead the country towards total financial inclusion by the year 2012.
Several banks have taken this initiative. PNB has set up a biometric ATM at one place. SBI has also provided financial benefits to the rural people at many parts of the country.