On Saturday, Finance Minister Nirmala Sitharaman made a crucial announcement that could bring significant changes to rural finance. A new initiative called the “Grameen Credit Score” will be developed by public sector banks to help people in rural areas, particularly those involved in Self-Help Groups (SHGs), access credit more easily.
This move is in line with the government’s broader goal to enhance financial inclusion and improve access to credit for those living in rural parts of the country. The announcement is also linked to the SVAMITVA Scheme, which aims to provide property cards to people in rural areas. These cards are expected to increase credit demand as rural households can now use their property as collateral for loans.
Prime Minister Narendra Modi had earlier highlighted how the issuance of property cards would unlock economic activity worth more than ₹100 lakh crore in the country. With more than 6 lakh villages in India, and nearly half already surveyed using drones, the potential for rural economic growth is immense.
Empowering Women in Rural Areas
Union Agriculture Minister Shivraj Singh Chouhan also spoke about the positive impact this new credit framework could have on women involved in Self-Help Groups. With a declared credit score, women will find it much easier to access loans from banks, opening up opportunities for entrepreneurship and financial independence.
India Post’s Role in Rural Development
In another major announcement, Sitharaman revealed plans to transform India Post into a key player in rural logistics. With 1.5 lakh rural post offices and a network of 2.4 lakh Dak Sevaks, India Post will be repositioned as a public logistics organization. This transformation will support rural entrepreneurs, including women, SHGs, MSMEs, and even larger businesses, helping them reach their markets and improve their supply chains.
Support for Cooperative Sector
Further, the government has extended support to the National Cooperative Development Corporation (NCDC), which will help strengthen cooperative sugar mills. A grant of ₹1,000 crore will be provided in two instalments, allowing the NCDC to provide loans of up to ₹10,000 crore to cooperative sugar mills. This move is expected to boost the cooperative sector, which is a crucial part of India’s rural economy.
These initiatives under the Union Budget 2025-26 show the government’s focus on building a stronger rural economy, where better access to credit and infrastructure can help farmers, entrepreneurs, and small businesses grow.
