The Hindu Business Line : Bank of India offers free credit counselling

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Chennai Jan. 26 Bank of India today opened a `free credit counselling services centre' here for those in distress under the burden of debt.

Explaining the rationale behind the service, the bank's Chairman and Managing Director, Mr M. Balachandran, said that the Bank of India intended to act as a liaison agent between those who had got themselves caught in a debt trap, and the lenders.

Social service

"This is purely a social service, there is no business spin-off from this," he said, adding that similar services were commonplace elsewhere in the world.

The centre would provide free advice on matters relating to gaining access to structured financial systems, including banking, and try to help rehabilitate borrowers in distress.

He said the other two centres, in Mumbai and Wardha, had been operational for about three months.

About 50 cases were handled by the centres, most of which related to credit card payments.

`More needed'

Mr Balachandran said that the Indian Banks Association intended to take up BOI's model and ask other banks to start such counselling services.

"There is a need for thousands of such centres across the country,'' he said.

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