PRELIMS BITS:
Overview:
Announced in the 2025 budget by Finance Minister Nirmala Sitharaman, the Grameen Credit Score Scheme aims to boost financial inclusion for Self Help Groups (SHGs) and rural women entrepreneurs by assessing their creditworthiness.
Key Features:
- Tailored for rural women entrepreneurs in SHGs.
- Helps formalize SHG transactions and integrates them into the central credit system.
- Facilitates better credit evaluation and access.
Objectives:
- Address barriers to credit for women in SHGs.
- Enable formal financial institutions to assess their creditworthiness.
- Improve financial inclusion for rural women entrepreneurs.
Expected Benefits:
- Easier access to loans and credit for rural women.
- Introduction of credit cards for micro-enterprises with limits up to ₹5 lakh.
- Enhanced credit assessment using a digital framework.
Economic Impact:
- Empowerment of grassroots entrepreneurs through better financial tools.
- Contribution to household incomes and rural economic growth.
- Supports sustainable development and poverty reduction.
Monitoring and Improvement:
- Continuous tracking of credit scores and loan capacities.
- Promotes responsible borrowing and repayment practices.