The Full Form of ‘PLIs’ in Banking is ‘Prime Lending Institutions’.
Full Form of PLIs
The full form of PLIs in banking is Prime Lending Institutions. These institutions are responsible for providing credit to individuals and businesses, as well as making investments in the economy. They are authorized by the Reserve Bank of India (RBI) to provide short-term and long-term funds to eligible borrowers.
PLIs play a major role in the Indian banking sector as they are one of the main sources of finance for small and medium enterprises (SMEs). They also help in meeting the financing needs of various sectors like agriculture, infrastructure, housing, etc. As per RBI guidelines, only those entities which have been approved by RBI can provide loans under this scheme.
The primary objective of PLIs is to promote economic growth by providing credit to those segments which otherwise would not have access to such facilities. This includes low-income groups who do not qualify for traditional bank loans due to their lack of collateral or other factors. By providing these loans at competitive rates, PLIs help businesses grow and create new jobs in the process.
PLI lending activities also help reduce poverty levels by allowing individuals who may not otherwise be able to acquire loans from banks or other financial institutions access to credit. This enables them to invest in education, start a business or purchase assets which can generate additional income.
Apart from helping small and medium enterprises gain access to unsecured business loans, PLIs also facilitate government initiatives such as rural development projects and social welfare schemes through microfinance programs. By offering microloans at reasonable terms, PLIs make it easier for small business owners and entrepreneurs in rural areas access capital necessary for expansion or sustenance.
PLI lending has been made more attractive with several incentives offered by the central government such as lower interest rates on loan amounts up to Rs 5 lakhs; waiver of processing fees; provisioning requirements relaxed; priority sector lending obligations waived; etc. Such incentives have helped increase the number of borrowers availing this facility over time which has further contributed towards economic growth in India.
In conclusion, PLIs are important players in India’s banking system because they offer easy access to credit for those who would otherwise not be able to obtain it from traditional sources. They help promote economic growth by facilitating increased access to finance for SMEs while at the same time enabling governments promote development projects through microfinance programs aimed at alleviating poverty levels across rural India.
Queries Covered Related to “PLIs”
- What is the full form of PLIs in Banking?
- Explain full name of PLIs.
- What does PLIs stand for?
- Meaning of PLIs