SBI Update: SBI is sending chocolates to the homes of loan defaulters, customers are shocked..

A special initiative has been started by the country's largest government bank SBI (State Bank of India). State Bank of India (SBI), the country's largest public sector lender, has launched a unique initiative to ensure timely payment of EMIs by borrowers, especially retail customers. The bank said that it is sending chocolates to potential borrowers who have defaulted in payment of monthly installments.

Why would the bank send chocolates?
The bank said in the statement that borrowers who are planning to default on payments do not respond even after being reminded by the bank, hence visiting their homes without informing them is a good option.

Retail loan distribution is increasing
Let us tell you that amid the increase in interest rates, retail loan distribution is also increasing. In such a situation, this step is being taken with the aim of better loan recovery.

Loan increased by 16.46 percent
SBI's retail loan allocation increased by 16.46 percent to Rs 12,04,279 crore in the June 2023 quarter, from Rs 10,34,111 crore in the same period of the previous financial year. The total loan account of the bank increased by 13.9 percent to Rs 33,03,731 crore.

A new way to remind about loan
“With two fintech companies using artificial intelligence (AI), we are helping our retail borrowers remind themselves of their loan repayment obligations,” Ashwini Kumar Tiwari, managing director in charge of risk, compliance, and stressed assets at SBI, said here over the weekend. Adopting a new approach. While one company is reconciling with the borrower, the other company is alerting us about the borrower's tendency to default.”

Customers do not answer phone calls
He said this new method of carrying a packet of chocolates and meeting them personally has been adopted as it has been found that a borrower planning to default will most likely not respond to a phone call from the bank reminding him to make the payment. A good way is to surprise them by meeting them at their home unannounced and so far, the success rate has been tremendous.

This step is currently being experimented with
Refusing to name the two companies, Tiwari said the move is still in the experimental phase and was implemented only about 15 days ago, and 'if successful, we will formally announce it.'
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