Just as contestants on song-and-dance shows on TV seek votes to get ahead in the competition, prospective borrowers of Tata Capital, especially those who are financially excluded, can solicit ‘ salaams ’ and pitch for a loan. Depending on the number of votes they get, the company will sanction personal loans up to ₹1 lakh.

Individuals from the economically weaker section/lower income group category, whose annual household income does not exceed ₹3 lakh, can avail of these ‘Salaam Loans’ — as they have been branded.

Applicants have to give a summary of the purpose for which they want a loan; it will stay online on www.doright.in for 3-4 weeks, and will be showcased across the country through social and digital media. The role of the public is critical as it is they who, based on the strength of the story, may choose to support the most deserving individuals with a ‘ salaam ’.

Qualitative review

If a proposal gets sufficient ‘likes’ or ‘ salaams ’, Tata Capital will carry out a qualitative review through personal discussion to assess the veracity of the person’s need and to prevent fraudulent claims.

Loans up to ₹1 lakh can be secured at a rate of 200-300 bps lower than the best personal loan interest rate in the market. No collateral or CIBIL check will be mandatory to avail this loan.

Govind Sankaranarayanan, COO, Retail Business and Housing Finance, said: “This initiative serves a larger industry purpose also. It will allow other organised lenders to gain the confidence to understand that these groups of customers are not unworthy of credit. Even if we disburse a few hundred loans, the enhanced visibility will ensure several thousand potential candidates get loans where they otherwise may not have.”

Loans can be taken for education, health or for any other reason. Kiran Johare, for example, wants a loan of ₹88,000 for higher education. He has posted his story and has so far got 96 ‘ salaams ’.

“I appeared for GATE 2016, and qualified for an M.Tech programme. But given our family’s financial conditions, my brothers are unable to afford the fee of ₹88,184,” Johare states.

Nashik-based Rupesh Balarao has posted a video seeking support for his cause. Balarao was afflicted by polio when he was eight years old and wants to run a general store. But his loan application was rejected by banks.

Now, his story, uploaded on the Tata Capital site, has so far got 123 votes.

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