[Assam] Fwd: Returned mail: see transcript for details

[Dilip/Dil Deka]

Dear Mr. Das,
  I wanted to provide feedback but I couldn't understand the crucial part,       " This scheme can be developed as a simile to LICs agents scheme. That way the B-con will be motivated to act as a recovery agent as his own interest will also lie in the repayment."
   
  I gather from the plan that the Bcons will be self employed, relying on commission. Who pays him the commission? The bank? Why would the banks pay commission if the banks aren't interested in making rural loans now? In insurance business, the money from premium is coming into LIC and thus commission is understandable. In Microcredit the money is going out of the bank. If the returns were higher than other loans, the banks probably won't mind paying commission. However, other than Grameen bank in Bangladesh, the repayment on rural loan money has been poor. Why would an urban bank venture into all this in the free market, unless the government subsidizes the operation? Is that in the plan?
  Will the Bcon be expected to collect the repayment of the loan or assist in the process, again to get some commission? Who pays him the commission - the bank?
   
  Some more detail on the plan will help us understand it better. It's a good effort, investment must flow to the rural areas if India wants to redistribute wealth. Wealth must be redistributed to erase the fast developing delineation between rich urban India and poor rural India and contain the extreme violence that is bound to hit the country.
  Thanks,
  Dilip Deka
   
   
  

Manoj Das <dasmk2k at gmail.com> wrote:
  Hi

Yours truly's attached scheme has been recommended to the planning commission by the working group on increasing credit flow to SME sector.

Kindly send in your feedbacks to improve the scheme.

Manoj 
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