Grameen Credit Score (GCS), Objectives and Key Benefits

Grameen Credit Score (GCS)

• Grameen Credit Score (GCS) is a financial framework to assess and improve the creditworthiness of Self-Help Groups (SHGs)and rural individuals.
• It was introduced by Union Finance Minister Nirmala Sitharaman in the Union Budget 2025-26.

Key Benefits of the Grameen Credit Score

Enhanced Financial Access

• Helps rural women entrepreneurs access loans to expand their businesses.
• Promotes financial literacy, introducing rural citizens to concepts such as Creditworthiness, Loan EMIs and repayment, Credit scores and credit cards.

Customized Financial Products

• New credit cards are designed for micro-enterprises with a limit of up to ₹5 lakh.

Improved Credit Assessment

• Digital framework for assessing the creditworthiness of SHG members.
• Helps bridge gaps in the current credit bureau system, which often overlooks SHG members.
• Allows rural women to track: Their credit score &Loan limits and repayment options.

Economic Stability and Growth

• Increased access to loans ▶️ more financial independence for SHG women.
• Encourages entrepreneurship in rural India, leading to sustainable economic growth.

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