In the Indian market, where the government has imposed a cap on the number of borrowers eligible to get loans, it’s difficult to find a loan even if you’ve got enough money.
The government says the cap will be lifted in the next few months.
The cap, which is imposed on the first year of the loan, has been criticized for driving up the cost of loans.
However, in a report published in December, the National Institute of Finance (NIF) estimated that the cap would have a negligible impact on the market.
It said that the net result of the cap is that a loan is made in the market at the lower rate of interest, thereby driving up interest rates.
“It would not have an adverse effect on the economy,” the report said.
It’s difficult for borrowers to find affordable loans.
In the last three months, the NIF has recorded over 6.3 lakh loans from private lenders in the country.
“With the government’s support, we have been able to reach out to more than 20,000 borrowers to provide loan counseling services.
We have also been able have more than 12,000 households avail the assistance,” said Ashok Singh, the co-founder of NIF.
The NIF also has partnered with private lenders and local banks to offer free financial counselling for borrowers.
But even though the government supports lenders, it has failed to provide the necessary help for borrowers who can’t afford the loan.
The reason for this, says Singh, is that borrowers are unable to pay back their loans as they are not eligible for a repayment subsidy.
“This is because the government does not allow the people who have made small loans to repay the money.
This has created a huge gap in the system,” he said.
The impact of the government on the financial system The government has been slow to take a stand on the issue.
The Finance Ministry has said that it has not taken a stance on the matter.
However the NIIF’s Singh says that the government is taking a different approach.
“The government has taken a position on this.
It has said in the past that it will not be a part of the financial sector,” he told Al Jazeera.
“They [the government] are taking a position that they are in the private sector, that they don’t have any control over the banks, that there are no restrictions in the sector.”
He said the government will be taking a “brave stand” in the future.
“We will be trying to make it easier for the people of India to have access to the financial services and banking that they need to survive,” he added.
The problem of lending for people with no money to their name can be traced back to the 1960s.
During that era, the government introduced a policy called the Swachh Bharat Mission, or the Swacha Bharat, in which it encouraged the country’s small and medium enterprises (SMEs) to create jobs.
The initiative also provided loans to SMEs for their start-ups.
The loans were to be paid back at a certain amount of time.
This meant that a small SME like a house builder would get an interest rate of 0.5 per cent for each loan.
“At that time, the market was so poor that you couldn’t make any money from a house.
And so the idea was that the SMEs should take over the loans and do some kind of business,” Singh said.
However many SMEs didn’t have the means to take on this responsibility.
They had to make loans themselves.
“In those days, there was a lot of pressure on SMEs to make loan repayments,” Singh explained.
In fact, it was the government that helped them do this.
According to Singh, these loans were given to SME-owned factories.
The banks then lent them money, while the government took the interest and took it out of the money, which was deposited in the banks’ accounts.
The bank then gave the loan back to SMOs and the process was repeated.
According with the government, these loan payments were a direct benefit to the SME, as they would now have a steady source of income.
“By giving the loans back to these SMEs, the banks helped them get their own business going and that helped to improve the overall condition of the economy and the people,” he explained.
But it wasn’t easy for SMEs in the late 1960s and early 1970s to access loans.
As a result, many SME’s did not have access or access to credit at all.
The credit crunch for SME was caused by the government taking over the loan from SMEs and creating the impression that it was not an appropriate use of government money.
As the government did not allow SMEs’ loans to be repaid, many of them went bust.
“These days, people in India are going through the financial crisis because of the bad economy,” Singh told Aljaan.
“And if you don