The Union Budget 2025-26 contained an announcement on the Grameen Credit Score, a framework to be developed by public-sector banks for the credit needs of members of Self-Help Groups (SHGs) and people in rural areas. The current credit scoring mechanism used by Credit Information Companies (ClCs) is, by design, generic to all individual borrowers with no specific consideration for the rural sector. A Grameen credit score tailored for the credit assessment purposes of SHG borrowers and the rural population would facilitate better credit assessment, thereby improving access to formal credit not just for SHGs but for the rural population, including farmers and marginalised communities. This is crucial for their economic growth and development. The Government is working out the modalities and contours of the Grameen Credit Score in consultation with the stakeholders.

This information was given by the Minister of State for Rural Development Dr. Chandra Sekhar Pemmasani in a written reply in Lok Sabha today.

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