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Flawed Bank Credit in Kerala: A Negative Impetus to Economic Change
Author(s) : Dr. Suby BabyVolume & Issue : VOLUME 3 / 2015 , ISSUE 1
Page(s) : 6
Abstract
Obviously, most of the bank officials criticise target oriented lending as it dilutes the acts of chalking out eligible borrowers and monitoring proper credit utilisation. Eventually, it results in loan default and utilization gap. Ensuring proper scrutiny of loan applications, sanctioning of adequate credit and assessment of the impact of credit on the employment, income and asset of the borrowers are inevitable to calibrate the system of banking and its impact on the economy as a whole. Believably, the study found that sizeable number of borrowers are diverting their borrowings for purposes other than those specified while obtaining sanctions from the banks. Again, the impact of bank credit on income and assets generation of borrowers is also found to be meagre.
Keywords
Credit Diversion, Micro Small and Medium Enterprise (MSME), Asset Generation, Credit utilization
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