The General Credit Card (GCC) Scheme is a financial initiative introduced by the Reserve Bank of India (RBI). It aims to provide credit to individuals, particularly those engaged in non-farm entrepreneurial activities. The GCC issued under this scheme is used as an identity card while recording transactions, enabling easy access to credit for small business owners.
By simplifying the credit process, the GCC Scheme aims to encourage entrepreneurship and support business expansion in non-farming sectors. This initiative helps streamline financial assistance for entrepreneurs who may not have access to traditional banking services. Explore major details about the General Credit Card scheme in this blog.
Table of contents
- What is a General Credit Card Scheme?
- Key Features of the General Credit Card Scheme
- How to Choose the Best General Credit Card Scheme for Your Needs?
- Top Banks Offering Loans Under GCC Scheme
- Benefits of the General Credit Card Scheme
- Eligibility Criteria for the General Credit Card Scheme
- Application Process for the General Credit Card Scheme: Step-by-Step
- General Credit Card Scheme vs. Premium Credit Cards
- How the General Credit Card Scheme Can Impact Your Credit Score?
- FAQs on General Credit Card Scheme
What is a General Credit Card Scheme?
The General Credit Card (GCC) scheme is a financial initiative designed to boost entrepreneurial activities in the non-farm sector. The primary objective is to facilitate easy credit access to individuals who aim to engage in entrepreneurial ventures.
The General Credit Card Scheme encourages the flow of credit by offering both working capital and term loans, enabling entrepreneurs to establish and expand their businesses. It does not set a maximum loan limit, as long as the loan is used for non-farm business activities that qualify as part of the priority sector lending by small finance banks.
It is structured to support small to medium-sized business owners, helping them overcome financial hurdles and achieve growth in their respective sectors.
Also: This blog includes details about the PM Vidyalakshmi Scheme. To know more about this topic read the blog.
Key Features of the General Credit Card Scheme
The General Credit Card (GCC) Scheme is aimed at empowering individuals engaged in non-farm entrepreneurial activities. Its unique features, such as collateral-free lending, no fixed loan ceiling, and modernized card options, make it a vital tool for entrepreneurs seeking to overcome financial barriers.
A few important key features of the GCC scheme are:
- Flexible Credit Facilities: Provides working capital and term loans to meet diverse entrepreneurial needs, supporting both operational and long-term investments.
- Nationwide Coverage: Available across the country, ensuring equitable access to credit for entrepreneurs in both rural and urban areas.
- Modernized Tools: Issued as a Smart Card/Debit Card with biometric compatibility for easy transactions, or as a credit card cum passbook for non-digitized accounts.
- Collateral-Free Lending: Follows Reserve Bank of India guidelines for micro and small enterprises, making credit accessible without requiring substantial security.
- No Loan Ceiling: No fixed upper limit on loans, with credit limits determined based on individual risk assessments by banks.
How to Choose the Best General Credit Card Scheme for Your Needs?
Choosing the right General Credit Card scheme involves evaluating several factors, such as loan eligibility, financial goals, and the type of entrepreneurial activity. By evaluating these factors carefully, you can choose a General Credit Card scheme that will support your entrepreneurial goals effectively. Here’s how you can select the best scheme:
| Factor | Consideration |
| Eligibility | Ensure the scheme is designed for non-farm entrepreneurial activities. It should align with your specific needs (e.g., working capital or term loan). |
| Financial Goals | Determine if the scheme offers the required loan limits for your business needs without overburdening you with high interest rates. |
| Security Norms | Check the security or collateral requirements. The GCC scheme is flexible, but knowing these beforehand can help you plan better. |
| Interest Rates | The rate of interest will be determined by banks based on their internal policies. Make sure you’re comfortable with it and compare it with other loan options. |
Top Banks Offering Loans Under GCC Scheme
Under the GCC scheme, various banks offer loans to eligible individuals, enabling them to access credit for their personal or business needs. Below are some of the top banks offering loans under the GCC Scheme:
- Bank of Baroda
- Punjab National Bank (PNB)
- Federal Bank
- Bangiya Gramin Vikash Bank (BGVB)
- Indian Overseas Bank
Benefits of the General Credit Card Scheme
The General Credit Card Scheme offers numerous benefits to entrepreneurs in the non-farm sector. This scheme aims to remove the traditional barriers to credit and ensures that entrepreneurs have the financial tools they need for business success.
A few of the benefits of the GCC scheme for individuals for entrepreneurial activity are:
| Benefit | Description |
| Easy Access to Credit | Entrepreneurs can access both working capital and term loans with minimal documentation, helping them focus on business development. |
| Collateral-Free Lending | As per the Reserve Bank’s guidelines, this scheme offers collateral-free loans, making it easier for small and medium enterprises (SMEs) to qualify. |
| No Loan Ceiling | There is no upper limit on the loan amount as long as the loan is for eligible entrepreneurial purposes, allowing businesses to scale without restrictions. |
| Smart Cards and Debit Cards | GCC can be issued as biometric smart cards or debit cards, providing convenience for transactions and tracking business finances. |
Eligibility Criteria for the General Credit Card Scheme
Eligibility for a General Credit Card Scheme typically requires certain criteria to be met. As per RBI, the eligibility is that “All non-farm entrepreneurial credit extended to individuals, which is eligible for classification under the priority sector guidelines.”
These can be breakdown as:
- Non-Farm Entrepreneurs: The scheme is designed exclusively for individuals engaged in entrepreneurial activities outside the agricultural sector.
- Individual Applicants: Only individual entrepreneurs are eligible for credit under this scheme.
- Priority Sector Classification: The credit extended must meet the eligibility requirements outlined under the Reserve Bank of India’s priority sector lending guidelines.
- Purpose-Specific Credit: Loans must be utilized strictly for entrepreneurial purposes within the non-farm sector to qualify for the scheme.
Also Read: Check out the RBI Ombudsman Scheme to seek grievance resolution with the banking Ombudsman. Know how to file a complaint with the RBI.
Application Process for the General Credit Card Scheme: Step-by-Step
Applying for a General Credit Card Scheme involves several quick and easy methods. But before applying, ensure you meet the eligibility criteria and have the required documentation to facilitate a smooth application process. One can apply for the GCC scheme in the following ways:
- Download and Submit Application Form Online: Visit the Bank’s GCC webpage to download the application form. Complete the form and submit it at your nearest Bank branch.
- Contact Centre Assistance: Call the Bank’s contact centre executives for guidance on the application process. They can provide information and assist you in initiating your application.
- In-Person Branch Visit: Visit any Bank branch to apply for the GCC Scheme. Bank staff will assist you with the application process and provide the necessary information.
The table shown below highlights the distinct objectives and features of credit cards given under the GCC scheme against premium credit cards. It showcases the GCC scheme’s focus on fostering entrepreneurship versus premium credit cards’ emphasis on lifestyle benefits.
| Feature | General Credit Card Scheme (GCC) | Premium Credit Cards |
| Purpose | Provides credit for non-farm entrepreneurial activities. | Offers personal credit for lifestyle and luxury needs. |
| Target Audience | Entrepreneurs in the non-farm sector. | High-income individuals and frequent spenders. |
| Credit Facility | Includes working capital and term loans. | Revolving credit with higher limits for personal use. |
| Eligibility | Must meet priority sector lending criteria. | Requires high income or a strong credit history. |
| Collateral | Often collateral-free as per RBI guidelines. | Typically does not require collateral but depends on income. |
| Loan Ceiling | No fixed ceiling; is determined by risk assessment. | Fixed credit limits based on income and credit score. |
| Interest Rates | Decided by banks within RBI guidelines; typically lower. | Higher interest rates due to premium benefits. |
| Additional Features | Can be issued as a Smart Card or credit-cum-passbook. | Offers rewards, cashback, travel perks, and lounge access. |
| Focus Area | Promotes entrepreneurship and economic growth. | Focuses on enhancing lifestyle and luxury experiences. |
| Documentation | Simple and minimal documentation is required. | Requires detailed financial and income records. |
How the General Credit Card Scheme Can Impact Your Credit Score?
Your General Credit Card Scheme can significantly influence your credit score, which affects your ability to borrow money, apply for loans, and even rent housing. By making timely payments and managing credit responsibly, borrowers can build a strong credit score early on.
Here’s how the GCC scheme will impact your credit score:
| Factor | Impact on Credit Score |
| Timely Payments | Making regular, on-time payments helps to build a positive credit history. |
| Credit Utilization | Using a large percentage of your available credit can negatively impact your score. Aim for a utilization rate of less than 30%. |
| Credit Inquiries | Too many inquiries in a short period can lower your score, so apply for cards wisely. |
| Credit Age | The longer you’ve had a credit account, the more positively it affects your score. |
FAQs on General Credit Card Scheme
The GCC Scheme is a financial initiative by the government to promote non-farm entrepreneurship. It offers flexible credit facilities, including working capital and term loans, to empower small business owners. The scheme helps individuals who might lack access to traditional banking services establish and expand their enterprises, fostering economic growth.
Entrepreneurs involved in non-farm businesses are eligible if their activities align with the Reserve Bank of India’s priority sector lending criteria. The scheme aims to assist individuals who are keen on building businesses but face challenges in accessing conventional financial support.
The GCC Scheme provides two types of loans: working capital loans to support daily operations and term loans for long-term investments in business infrastructure, enabling entrepreneurs to achieve sustainable growth
There is no upper loan limit under the GCC Scheme, as long as the funds are utilized for eligible entrepreneurial activities. The loan amount is determined based on individual risk assessments conducted by banks.
Interest rates are decided by the respective banks based on their board-approved policies, staying within the guidelines set by the Reserve Bank of India. These rates are generally designed to be favourable for small entrepreneurs.
Most loans under the GCC Scheme are collateral-free, adhering to RBI guidelines. This feature ensures that micro and small entrepreneurs can access credit without the burden of providing substantial security.
Yes, the GCC can be issued as a smart card or debit card compatible with biometric authentication, making it convenient for digital transactions and easy to track business-related expenses.
Documents typically include identity proof, address proof, and business-related papers. Banks may also require additional information depending on the loan amount and purpose.
By simplifying the credit process and offering collateral-free loans, the GCC Scheme encourages individuals to start and expand businesses. It reduces financial barriers and fosters economic growth in the non-farm sector.
No, the GCC is strictly designed to fund entrepreneurial ventures. Using the credit for non-business purposes may result in disqualification and financial penalties.
Yes, the GCC Scheme covers the entire country, providing equitable access to credit for entrepreneurs in both rural and urban areas. This ensures a balanced economic upliftment across regions.
Applications can be submitted online by downloading and completing the form from the bank’s website, contacting customer service, or visiting the nearest branch for in-person assistance.
Yes, in cases where accounts are not digitized, the GCC can be issued as a passbook or credit card cum passbook, ensuring accessibility even in non-digital setups.
The scheme offers easy credit access, minimal documentation, collateral-free loans, and no upper limit on credit, empowering entrepreneurs to focus on growing their businesses.
No, the GCC Scheme is exclusively for non-farm entrepreneurial activities. Farmers must explore other government schemes targeted at agricultural development.
Responsible usage and timely repayments under the GCC Scheme can significantly enhance your credit score, improving your financial credibility and future borrowing capacity.
Repayment terms are decided by the banks based on the type and amount of the loan. Borrowers are advised to discuss repayment schedules during the application process.
Missing payments can lead to penalties, negatively impact your credit score, and may result in legal actions. It’s crucial to manage repayments responsibly.
While most banks do not impose penalties for early repayments, borrowers should confirm this with their bank during the loan application to avoid unexpected charges.
Compare options based on eligibility, interest rates, collateral requirements, and credit limits. Choose a scheme that aligns with your financial needs and long-term business goa
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