You are here: Home » Opinion » Letters
Business Standard

Letter to BS: Regular CIBIL melas can reduce number of wilful defaulters

It is important to educate borrowers about the benefits of repayment of loans

Business Standard 

Personal loans account for 96% of new bank loans during FY18: RBI data
Representative Image

This refers to your front page report “RBI blames banks for Mudra NPAs” (July 22). It is important to note that a majority of those who took were first-time borrowers. It could also be their first tryst with a small business venture. In most cases, it was their first port of call. Keeping these things in mind, it is vital to educate them about the benefits of repayments of loans. A get-together at the district, taluka or village level in the bank premises to make them aware of the importance of CIBIL and the duties of a responsible borrower will yield positive results. A WhatsApp group of all borrowers could be made in each taluka and a request to approach the bank in cases of irregularity of loan repayment will go a long way in developing a positive culture among first-time borrowers.

Young bankers who have joined service recently are brimming with energy and they could be trained to approach Mudra borrowers and understand their problems. Honouring good Mudra borrowers in the branch once a month by inviting the sarpanch and other prominent villagers will infuse a lot of confidence and encourage a repayment culture among Mudra borrowers. Regular CIBIL melas and education camps in colleges, communities halls and social gatherings will surely bring down the number of wilful defaulters.

N K Bakshi, Vadodara

can be mailed, faxed or e-mailed to:

The Editor, Business Standard

Nehru House, 4 Bahadur Shah Zafar Marg

New Delhi 110 002

Fax: (011) 23720201 · E-mail:

All must have a postal address and telephone number

First Published: Mon, July 22 2019. 23:04 IST