The Swarojgar Credit card was first introduced in September 2003. The most basic idea behind it was to provide adequate and uninterrupted credit (working capital) which included consumption needs and/or block capital requirements to small artisans, handloom weavers, and other self-employed persons.
Such self-employed persons include micro-entrepreneurs, SHGs, etc. The credit would be provided from the banking system in a flexible and cost-effective manner which includes minimum hassle for the applicant.
Highlights of the scheme
- Under the Swarojgar Credit card scheme, a credit card along with a passbook would be issued to the applicant in order to apply for a working capital/block capital.
- ₹25,000/- would be issued per borrower as a composite loan under the SCC scheme. The security norms attached to the loan, the interest rates, and the margin would be decided as per RBI mandates, which would be updated on the RBI website.
- The credit card holder under this scheme would be covered under the Group Insurance Scheme whose cost would be borne by the bank and the borrower in equal proportions.
- The charge of applying for the credit would never exceed ₹50/-.
- The scheme is extended to SHGs, as a means to help them sustain their businesses.
The eligibility criteria
Micro entrepreneurs, small scale artisans, handloom weavers, people working in the service sector, fisherfolks, self-employed persons, rickshaw owners, and various other micro-entrepreneurs are eligible to apply for a Swarojgar Credit card scheme.
With the help of this scheme, people can reinvent their financial situation and generate more revenue that helps them alleviate their economic status.
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