Empowering Urban Economies: The Indira Gandhi Shahri Credit Card Yojana

Introduction

The Indira Gandhi Shahri Credit Card Yojana is a pioneering initiative that aims to boost urban economies and empower individuals by providing easy access to credit facilities. Named after the former Prime Minister of India, Indira Gandhi, this yojana, or scheme, is a testament to the government’s commitment to financial inclusion and socio-economic development. Let’s delve into the intricacies of the Indira Gandhi Shahri Credit Card Yojana, exploring the step-by-step process and the multitude of benefits it offers.

Indira Gandhi Urban Credit Card Scheme launched in compliance with the budget announcement 2021-22 by the Honorable Chief Minister.

Providing financial resources for employment/self-employment and daily needs in urban areas in view of Covid-19.

Under the scheme, Rs 5 lakh will be given to street vendors of urban areas, youth of unorganized service sector and unemployed persons. Providing interest free loan up to Rs 50000

Loan under the scheme through public sector banks/private banks/cooperative banks and financial institutions

Step 1: Inception and Objectives: The Indira Gandhi Shahri Credit Card Yojana was conceptualized to address the financial needs of urban residents, particularly those engaged in small businesses and informal sectors. Launched with the goal of fostering entrepreneurship and facilitating easy access to credit, the yojana seeks to uplift urban economies and enhance the financial well-being of individuals.

Step 2: Eligibility Criteria and Inclusivity: To ensure inclusivity, the eligibility criteria for the Indira Gandhi Shahri Credit Card Yojana are designed to cater to a broad spectrum of urban residents. Individuals engaged in small and medium enterprises (SMEs), street vendors, and other informal sectors are often prioritized. The focus is on extending the benefits to those who may not have had access to formal credit channels in the past.

Step 3: Application Process: The application process for the Indira Gandhi Shahri Credit Card is typically streamlined to facilitate easy enrollment. Applicants can apply through designated banking institutions or government portals, submitting basic documentation to establish their identity and business credentials. The emphasis is on a hassle-free application process to encourage widespread participation.

Step 4: Credit Limit Determination: Once approved, the credit limit is determined based on the applicant’s financial profile and business requirements. The objective is to provide a substantial yet judicious credit limit that aligns with the individual’s capacity to repay. This approach ensures that borrowers can leverage credit responsibly without undue financial strain.

Step 5: Collateral-Free Credit and Interest Rates: A notable feature of the Indira Gandhi Shahri Credit Card Yojana is the provision of collateral-free credit, eliminating the need for borrowers to pledge assets for securing loans. Additionally, the interest rates are often competitive, making the credit facility more accessible and affordable for small business owners and entrepreneurs.

Indira Gandhi Urban Credit Card Scheme 2021

Local Government Department

planning started

06 Aug 2021

valid for period

31-Mar-2022

funded

state government

100%

Central Government

0%

type of plan

personal

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At the district level, the District Collector has been appointed the nodal officer for the implementation and monitoring of this scheme. Through which, on the basis of the target allotted to the municipal bodies, street vendors of each category , unemployed youth or people associated with the informal sector will be identified by the concerned municipal body as per the guidelines. To apply for the scheme, the applicant must be a resident of urban area of ​​Rajasthan state. The required documents to be attached with the application form are as follows-

  • Passport size photograph
  • Janadhar Card
  • Aadhar card

Documents          related to current residence in Rajasthan

Documents          related to permanent residence in Rajasthan

Bank account          passbook

The documents related to employment to apply under the scheme are as follows-

  • Certificate for the seller , wedding ID card , recommendation letter issued by the municipal body.
  • Registration number registered at the District Employment Center.
  • The applicant will also have to submit a self-attested affidavit in which : –

Ø   Information related to the outstanding loan currently running on the applicant (if any).

Ø   Type of trade/business.

Ø   Self declaration of monthly income (monthly income should be less than Rs 15000 ).

Ø   Details of monthly family income should be included (monthly income should be less than Rs 50000 ).

Step 6: Utilization of Credit: The credit extended through the Indira Gandhi Shahri Credit Card can be utilized for a variety of purposes, including business expansion, working capital needs, and the purchase of equipment or inventory. The flexibility in the utilization of credit empowers borrowers to make strategic financial decisions that align with their business goals.

Step 7: Repayment Options and Grace Periods: Repayment options under the yojana are designed to accommodate the cash flow dynamics of small businesses. Borrowers are typically offered flexible repayment schedules, including monthly, quarterly, or annual installments. Additionally, the yojana may incorporate grace periods, allowing borrowers to navigate through periods of financial volatility without immediate repayment obligations.

Indira Gandhi Urban Credit Card Scheme

Eligibility for the scheme

Permanent resident of Rajasthan, whose total individual monthly income is less than Rs 15,000 and family monthly income is less than Rs 50,000.

urban unemployed youth

Unemployed registered in the District Employment Center (those who are not getting unemployment allowance)

urban street vendors

Street vendors identified in the survey

Street vendors holding sales certificate and identity card

Street vendors deprived of survey who have been issued LOR by the civic body

Those working in peri-urban areas who have been issued a recommendation letter by the body

unorganized service sector workers 

Hair dresser, rickshaw puller, potter, khati, cobbler, mechanic, tailor, washerman, plumber, mechanic, tea seller, chaat seller etc. (Age limit 18-40 years)

People working in other professions, identified by the District Collector

 

 

Step 8: Skill Development and Entrepreneurship Support: Beyond providing financial assistance, the Indira Gandhi Shahri Credit Card Yojana often includes components aimed at skill development and entrepreneurship support. Training programs, workshops, and mentorship initiatives may be integrated to equip beneficiaries with the knowledge and skills necessary for the sustainable growth of their businesses.

Step 9: Monitoring and Evaluation: To ensure the efficacy of the yojana, robust monitoring and evaluation mechanisms are put in place. Regular assessments of the impact on urban economies, the success of individual businesses, and the overall financial upliftment of beneficiaries contribute to the continuous refinement and improvement of the yojana.

Step 10: Government Support and Future Outlook: The Indira Gandhi Shahri Credit Card Yojana operates with active government support, often involving collaborations between financial institutions and relevant government agencies. The future outlook includes the expansion of the yojana to reach more urban residents and the introduction of refinements based on feedback and evolving economic landscapes.

Conclusion

The Indira Gandhi Shahri Credit Card Yojana stands as a beacon of financial inclusivity, striving to transform the urban economic landscape by providing accessible credit facilities to those who need it the most. From its inception to the continuous efforts towards skill development and entrepreneurship support, the yojana embodies the spirit of empowerment and economic progress. As the initiative unfolds, it not only shapes the financial destinies of individual beneficiaries but also contributes to the broader goal of fostering resilient and thriving urban economies.

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