What Are The Benefits Of Using Bcs?

1.	What Are The Benefits Of Using Bcs?
Answer» Some of the advantages in using BCs as listed below: A better alternative for bank branches : Generally, a rural bank branch can serve 5,000 to 10,000 families in 15 to 20 villages within a radius of 15 kms. A Public Sector Bank branch may require more than 5 years to serve unbanked areas in India, while a private sector & FOREIGN bank with IT connectivity may require about 5 times more time. Further, OBTAINING PERMISSION to open a branch is a long and protracted process. The BC option potentially enables banks to reach out much faster and at a much lower cost. Reaching the unreached : The model enable banks to extend financial services to the unreached clients beyond their branch network as beneficiaries of the BCs are mostly located at unbanked and under banked areas. Better loan performance: Since local stakeholders LIKE NGOs, post offices, etc., are INVOLVED in the process, they know the customers at a personal level. The personal connection enhances the customers' accountability to the BC, which in turn improves loan performance and repayment rates. Doorstep banking: D isbursement and loan recovery at the doorsteps of the beneficiary. Quick expansion: Scaling up of this model is possible within a short span of time. Some of the advantages in using BCs as listed below:

Answer»

Some of the advantages in using BCs as listed below:

A better alternative for bank branches : Generally, a rural bank branch can serve 5,000 to 10,000 families in 15 to 20 villages within a radius of 15 kms. A Public Sector Bank branch may require more than 5 years to serve unbanked areas in India, while a private sector & FOREIGN bank with IT connectivity may require about 5 times more time. Further, OBTAINING PERMISSION to open a branch is a long and protracted process. The BC option potentially enables banks to reach out much faster and at a much lower cost.
Reaching the unreached : The model enable banks to extend financial services to the unreached clients beyond their branch network as beneficiaries of the BCs are mostly located at unbanked and under banked areas.
Better loan performance: Since local stakeholders LIKE NGOs, post offices, etc., are INVOLVED in the process, they know the customers at a personal level. The personal connection enhances the customers' accountability to the BC, which in turn improves loan performance and repayment rates.
Doorstep banking: D isbursement and loan recovery at the doorsteps of the beneficiary.
Quick expansion: Scaling up of this model is possible within a short span of time.

Some of the advantages in using BCs as listed below:

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