Grameen Credit Score | 04 Feb 2025

Union Budget 2025-26 has introduced the Grameen Credit Score (GCS) framework to address the credit needs of Self Help Groups (SHGs) and rural populations.

Grameen Credit Score:
- About: It is developed by public sector banks to assess the creditworthiness of rural individuals, facilitating easier access to loans.
  - It aims to improve repayment discipline and reduce fraud by providing a more accurate evaluation of borrowers in rural areas.
- Impact: It will strengthen microfinance, boost financial inclusion, and support sectors like agriculture, rural development, and MSMEs.
  - GCS will complement existing microfinance models and work alongside credit scores like CIBIL and CRIF Highmark for assessing loans.
  - This score will be integrated with the SVAMITVA Scheme.
Other Initiatives:
- Transformation of India Post: The Union Budget 2025 proposed transforming India Post into a major public logistics organization, utilizing its vast rural network of 1.5 lakh post offices and 2.4 lakh Dak Sevaks.
- Support for National Cooperative Development Corporation (NCDC): Rs 500 crore Grant-in-aid allocated for strengthening cooperative sugar mills to boost cooperative sector lending.