Grameen Credit Score Scheme

February 8, 2025

The Grameen Credit Score Scheme was announced by Finance Minister Nirmala Sitharaman in the 2025 budget. This initiative aims to enhance financial inclusion for Self Help Groups (SHGs) and rural women entrepreneurs in India. It represents shift in assessing the creditworthiness of millions of women involved in SHGs. The scheme seeks to align these women with the formal financial system of India.

About Grameen Credit Score

The Grameen credit score is a new framework designed specifically for rural women.
It focuses on providing support to women entrepreneurs in SHGs.
This score will help in evaluating their creditworthiness.

Objectives of the Scheme

The primary goal is to address the barriers women face in obtaining credit. Many SHGs are not connected to formal credit systems. This lack of connection hinders financial inclusion. The Grameen credit score aims to formalise SHG transactions within the central credit system. This will enable financial institutions to assess creditworthiness more accurately.

Positive Changes Expected

The introduction of the Grameen credit score is anticipated to bring several benefits. Firstly, it enhances financial access for rural women, allowing them to expand their businesses. Secondly, it introduces concepts such as credit cards and loan repayment. Thirdly, it will improve credit assessment through a digital framework. This framework will help bridge gaps in the current credit bureau system.

Customized Financial Products

The scheme will offer customised financial products, including credit cards for micro-enterprises. These cards will have limits of up to ₹5 lakh. This move is expected to empower grassroots-level entrepreneurs . It will provide them with the necessary tools to manage their finances effectively.

Economic Impact

The Grameen credit score is poised to promote economic stability in rural areas. Increased access to credit will enable women-led SHGs to contribute more effectively to their households. This, in turn, will encourage growth in the rural community. The scheme aligns with the government’s broader goals of sustainable development and poverty alleviation.

Monitoring and Improvement

The initiative allows women to monitor their credit scores and loan capacities continuously. This ongoing assessment will help them improve their financial standing. It also encourages responsible borrowing and repayment practices.

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