Apropos Rajeev Chandrasekhar's article "MUDRA Bank: A catalyst for India's 10% GDP growth" (March 16), despite our economy being dominated by banks, cheap credit is not accessible easily to small borrowers from all the segments. At a time when these borrowers are looking for cheap, institutionalised credit for their day-to-day working, the Micro Units Development Refinance Agency (MUDRA) Bank will certainly help and accelerate the flow of credit. Many people, especially from semi-urban and rural areas, still approach moneylenders for their business requirements. These lenders charge exorbitant rates of interest. The income generated from small economic activities is not sufficient, and consequently, borrowers remain in debt.
The MUDRA Bank will need to deliver credit at cheap rates to ensure that the end users benefit from this.
V S K Pillai Kottayam
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