Rising credit disbursement in Tripura under the Annual Credit Plan 2025–26 highlights the urgent need for Financial Literacy Counsellors in banks to prevent loan defaults, improve responsible borrowing, and ensure sustainable banking growth across rural and semi-urban regions.
The steady rise in credit disbursement across Tripura under the Annual Credit Plan (ACP) 2025–26 has brought renewed focus on the importance of strengthening financial awareness among borrowers. According to the latest State Level Bankers Committee (SLBC) report published by Punjab National Bank, overall lending in agriculture, MSME, and non-priority sectors has shown consistent growth in the first quarter of the financial year.
The Grand Total achievement under the ACP has reached 27 percent by June 2025, compared to 25 percent during the same period last year, reflecting positive year-on-year progress. While the growth indicates expanding economic activity and improved credit outreach, financial experts caution that higher disbursement also increases exposure to potential risks, including loan defaults and misutilisation of funds.
Rising Credit, Rising Responsibility
Tripura’s expanding credit portfolio is largely driven by agricultural loans, MSME financing, and various government-supported schemes aimed at promoting entrepreneurship and rural development. The banking sector’s proactive approach has enabled more farmers, self-help groups, small entrepreneurs, and first-time borrowers to access institutional credit.
However, with increased access to credit comes the responsibility of ensuring borrowers understand loan conditions, repayment obligations, interest calculations, and digital transaction safety. Many rural and semi-urban customers remain unfamiliar with complex financial products, making them vulnerable to over-indebtedness and financial stress.
Bank branches across the state are often burdened with operational and administrative tasks, leaving limited time for structured customer counselling. In the absence of systematic guidance, borrowers may fail to assess repayment capacity accurately or may misunderstand loan terms, leading to repayment irregularities.
The Critical Role of Financial Literacy Counsellors
Financial Literacy Counsellors (FLCs) can serve as a vital bridge between banks and customers. Their role would include educating borrowers about responsible credit usage, encouraging savings discipline, clarifying insurance coverage details, and explaining grievance redressal mechanisms.
Experts emphasize that FLCs could conduct awareness sessions on crop insurance schemes, MSME credit management, pension planning, and government subsidy-linked programs. Additionally, as digital banking becomes more prevalent, counsellors can educate customers on cyber fraud prevention, safe online transactions, and secure use of mobile banking platforms.
The need is particularly urgent in Tripura, where a significant portion of the population resides in rural areas with limited exposure to formal financial systems. First-generation borrowers, in particular, require step-by-step guidance to navigate banking processes effectively.
Strengthening Sustainable Banking Growth
While the rising achievement under the Annual Credit Plan is encouraging, sustainable growth depends on the quality of credit absorption. Without adequate financial literacy support, increased lending may inadvertently contribute to rising non-performing assets (NPAs) in the long run.
Institutionalising Financial Literacy Counsellors in every district or cluster of branches could significantly enhance credit discipline and repayment behavior. Regular financial literacy camps, integration of counselling with branch-level operations, and dedicated awareness drives can create a more informed customer base.
Stakeholders argue that inclusive banking is not merely about meeting disbursement targets but also about ensuring that borrowers are equipped to manage credit responsibly. Transparent communication, simplified financial education modules, and consistent customer engagement are key components of a resilient banking ecosystem.
Policy Implications and Way Forward
The recruitment of trained Financial Literacy Counsellors should be treated as an essential policy intervention rather than an optional initiative. With Tripura’s credit flow steadily expanding, the state’s banking infrastructure must evolve to provide not just funds but also financial guidance.
A structured FLC mechanism would strengthen trust in the banking system, improve repayment culture, and support long-term economic stability. As Tripura continues to witness growing economic activity supported by increased institutional lending, matching financial expansion with education will be crucial.
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In conclusion, the upward trend in credit disbursement is a positive signal for Tripura’s economic development. However, to ensure that growth translates into sustainable progress, financial literacy must become a central pillar of the banking framework. The timely appointment of Financial Literacy Counsellors can play a transformative role in protecting borrowers, strengthening banks, and fostering responsible financial behavior across the state.
