To revive the slowing economy and bring back the lost consumption, the government is looking to disrupt the retail loan sector similar to SME loans. As per the proposal, similar to the way SMEs now have access to easy loan on the psbloansin59minutes.com portal, retail category will be offered a host of loans including home, personal and car loans in a matter of just 59 minutes.
The proposal has been deliberated at a meeting between public sector banks and Finance minister Nirmala Sitharaman and this shall be to strengthen the way of easy credit access for retail category of individuals.
Notably, India has reported lower in GDP numbers for the third-straight quarter and the slowdown is imminent across sectors.
FMCG companies are reeling under a crisis due to agrarian distress and there is seen a fall in the sales of very basic goods such as hair oil, wheat flour etc. Two-wheeler sales have also been impacted due to poor rural demand.
Auto slump is visible now for a long course of time and sales have fallen to a 10-year low for some of the companies.
The current slowdown could last longer than thought and will get more bitter before it eventually gets better, says Amitabh Chaudhry, CEO of Axis Bank.
"It's obvious that the Indian economy is stalling. It started with the NBFC and real estate sector and has now impacted the auto sector and the consumption economy," Chaudhry says.
And this poor demand has led to staling of production by some of the companies, though on a temporary basis.
The current effort towards extending easy credit can be a gamechanger spurring growing which has been for some while been losing ground.