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Most Common Government Schemes and Eligibility Criteria Related to Credit Card

Credit cards are one of the most beneficial financial tools if used responsibly. The Government of India has also taken a few active initiatives with an aim at increasing access to such credit for economically and underprivileged sections of the society.

The Pradhan Mantri Credit Card Yojana can be referred to as one of the most successful initiatives that have led to financial inclusion into the core banking system of many underprivileged individuals.

Two major government credit card schemes

The schemes listed below provide most benefits to students, farmers and small business organisations.

  1. Pradhan Mantri MUDRA Yojana

This is an initiative that aims to uphold and support the small businesses of the country. Under this Yojana, the government provides subsidised loans for small and micro companies to meet their financial needs.

The term MUDRA stands for Micro Units Development & Refinance Agency. More than 5 Crore loans have been sanctioned under this initiative in the financial year 2018-19. It is a limited organisation set up by the Government to provide all non-farming individuals with unsecured loans. Credit card loans are provided in 3 main categories.

  • Shishu- Under this category, loans up to Rs. 50,000 is provided to the applicants.

  • Kishore- Here, loans are ranging from Rs. 50,000 to Rs. 5,00,000 are provided.

  • Tarun- Under Tarun category, the value of loans ranging from Rs. 5,00,000 to Rs. 10,00,000 are disbursed.

The maximum loan provided under this Pradhan Mantri Credit Card Yojana is Rs. 10,00,000. Under this scheme, the government provides loans for the following purposes –

  • Commercial vehicle loans for both 2-wheelers and 4-wheelers.

  • Business loans for capital investments like buying plants and machinery, renovation purposes and working capital needs.

  • These loans can also be used as dropline overdraft facilities.

Documents required for availing loan under MUDRA Yojana include –

  • Filled Mudra application form.

  • Income proof.

  • Address proof.

  • Identity proof.

  • Two passport sized photos.

  1. Kisan Credit Card Loan Scheme

The word Kisan means farmer in Hindi. As the name suggests, this scheme is exclusively targeted at farmers. Launched in the year 1998, the project provides short term credit to farmers. Previously, the farmers had to borrow from loan sharks that charged exorbitant interest rates. After this initiative, the exploitation of farming individuals has almost been eliminated.

Currently, the scheme is targeting to provide credit to 1 Crore farmers within a period of 100 days. Farmers can avail these Kisan credit card loans for various reasons. Some of them are listed below –

  • Expenses relating to own or allied agricultural activities.

  • Requirements for animal husbandry like poultry, dairy animals, etc.

  • Irrigation requirements like pumps, pipes and fixtures.

  • The funds can also be used to meet post-harvest expenses like processing and selling expenses.

If you are looking to avail a credit card, you should opt for RBL Bank SuperCard. They provide interest-free cash withdrawal facilities for 50 days along with high welcome rewards.

Benefits of the scheme –

  • An all-in-one loan that takes care of all kinds of financial needs of a farmer.

  • Smaller loans are available for tenor extending up to 3 years.

  • They can be used to fulfil requirements for fertilizers, seeds and irrigation needs as well.

  • Lenders issue credit cards that can be used for withdrawing funds from ATMs and other branches as well.

Many individuals avail credit cards to increase their credit score. You can learn how you can use a credit card to improve your credit score. This will help you avail an unsecured loan easily. This is a great benefit offered by credit cards.

Eligibility criteria to availing Pradhan Mantri Credit Card Yojana

  • To avail a loan under Mudra Yojana, the applicant must own a small and micro-enterprise. Individuals engaged in a farming activity are not eligible. However, allied farming activities can avail credit card under this scheme.

  • Individuals engaged in farming activities and animal husbandry are eligible to get a loan under the Kisan Credit Card scheme.

  • All of the individuals must be able to provide the required documents mentioned previously.

These are the few eligibility criteria that individuals must fulfil to secure approval. Learning how to use credit cards wisely can help individuals to get the most value out of their loaned funds.

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