As per a leading business daily report, PSBs in order to augment the scale of financial inclusion is mulling over the proposal to set up a common platform that offers loans of various types on an instant basis and at competitive rates.

The loans will be processed and disbursed to the retail class and small and medium enterprises based on the credit worthiness of the borrower.

The platform will be open to all and depending on their requirement borrowers can fill in all the relevant details and the interested lenders will then make competitive offers for different loan types such as personal, home, business loan etc. And on the basis of such offers made, borrowers can choose the best deal at hand.

A common checklist will be made available to assess the credit worthiness of the borrower.

As per a senior banking official, this enhanced way of providing credit shall be to scale up the Pradhan Mantri Jan Dhan Yojana to make formal banking more inclusive. Further the official is cited as saying, "Brick-and-mortar branches will progressively become redundant. This portal will have simplified forms and processes to help borrowers get faster approvals on their application".

This way banks will be able to strengthen their looming credit portfolio which for the quarter ended March stood at just 4.7% that in case of private banks has been over 20%.

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