State run Peoples Bank plans to use its extensive pawning network as broader base to popularise micro finance activities throughout the country.
With technical help from the German Technical Cooperations Rural Banking Innovations Project, the bank has todate lent over Rs. 350 mn since 1998. This makes it one of the largest public banking institutions in the country to engage in micro finance.rn
rnGTZ has been working with Peoples Bank staff to ferret out suitable recipients who are otherwise shunned by conventional bankers as lquote non-bankable customers. Technical input has gone into to evaluate, structure and monitor loan disbursements.rn
rnLalith Fernando, Head of Personal Banking & Development Finance says nearly all clients have little idea on how to structure a basic financial statement or a project report.rn
rnMicro finance, notes Fernando, has worked well for Peoples Bank, with the bank helping entrepreneurs with their seed capital.rn
rnLoan disbursements range from Rs. 25,000 to Rs. 5