The Priority sector lending environment is a complex one. It is constricted by multiple issues that range from low profitability and high non-performing assets to strict regulations and high transaction costs, despite the fact that the target audience of this segment is, more often than not, from the economically weaker sections of society.
In addition to this, the complex processes of sanctioning and monitoring large number of low value loans is both time consuming and manpower intensive. All these translate to the remarkably low profitability that banks make in this sector. In such a scenario, investments in innovative and scalable technologies will ensure a tight rein on high transaction costs.
Priority Lending solution covers the following:
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