CSC SPV and HDFC Bank joined hands to enable four lakh Village Level Entrepreneurs (VLEs) of the Common Services Centers to operate as Banking Facilitators of HDFC Bank. HDFC Bank has also launched Gold Loans and Housing Loans through CSCs. All VLEs in CSC ecosystem will be able to disburse these loans for rural customers.
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A citizen just needs to carry registered mobile phone and an ID proof and loan will be sanctioned on the spot at the nearest CSC. A unique reference ID will be generated once the process is completed which can be used for HDFC banking products and avail Easy EMI.
Speaking at the launch, Ms. Smita Bhagat, Group Head – Government and Institutional Business (GIB) and Start-ups at HDFC Bank said, “We at HDFC Bank have always strived to enhance our customers convenience and provide them with innovative solutions. The introduction of Gold Loan and Housing Loan will help assist our rural customers to make things affordable, which otherwise would seem rather difficult with limited income. This scheme is just another initiative in bridging the gap between Bharat & India”.
Dr. Dinesh Kumar Tyagi, Managing Director at CSC SPV, said–“We are extremely excited to partner with HDFC Bank in enabling 4 lakh VLEs as BFs on the CSC platform. This will help in the financial empowerment of the citizens in rural and semi-urban areas. Gold Loan service through CSC will curb informal lending in rural India. Most of the informal lenders charge much higher interest on loans. Thus the cost to the borrower of the informal loans is much higher. Higher cost of borrowing means a larger part of earning of the poor is used to repay the loan and they have less income left for themselves.” “The government has said that eService delivery will be in all villages. It means that now we have to expand in all 6.5 lakh villages. ”
The Village Level Entrepreneurs (VLEs) of CSC have been playing an instrumental role in providing a host of financial services and offerings to the rural India, including affordable credit to the last mile customers. CSCs provide a range of financial services from account opening, transaction services, deposit booking, loan and EMI collections under one umbrella.