Swarojgar Credit Card: Empowering Entrepreneurs with Easy Credit Access
Updated: 28-01-2025 at 6:59 AM
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The Swarojgar Credit Card was inaugurated to meet the immediate capital requirements of MSME workers as well as owners. Due to factors such as lower cost of funds, favourable loan terms and high credit ceilings, this credit card is efficient in providing a financial enabler for small business vendors and artisans.
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Overview
The below table showcases the salient features of the Swarojgar Credit Scheme and how one can apply for the Swarojgar Credit Card Scheme Online:
| Section | Key Highlights |
|---|---|
| Name | Swarojgar Credit Scheme |
| Loan Types | 1. Joint (Composite) Loan 2. Term Loan (repayable within 5 years) 3. Revolving Fund |
| Loan Limit | General loan limit: ₹25,000; Special limit: up to ₹25,000 based on borrower's working capital needs and repayment ability. |
| Credit Limit Assessment | Based on investment needs for term loans and working capital requirements for revolving credit. |
| Margin/Subsidy | Follows Head Office guidelines and is not linked to any other subsidy programs. |
| Security | No collateral is required, but assets created from bank loans must be hypothecated. |
| Mode of Operation | Beneficiaries receive a laminated credit card and passbook to access the credit facility. Operations are managed through the card issuing branch. |
| Documents Required | ID Proof (Aadhaar, PAN Card, Passport), Address Proof (Ration Card, Electricity Bill), Income Documents (Pay Stubs, Income Tax Receipts, Bank Statements). |
What Is The Swarojgar Credit Card Scheme (स्वरोजगार क्रेडिट कार्ड योजना)?
The Swarojgar Credit Card Scheme is a unique offering by UCO Bank to provide financial assistance to small artisans, self-employed individuals as well as micro-entrepreneurs. The Banking Company provides composite loans; cash credit and term loans, which cater for the financial needs of workers within the MSME sector.
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Features
The Swarojgar Credit Card offers composite loans, including cash credit and term loans, with competitive interest rates. It also provides flexible repayment options and is valid for five years, with an annual renewal process.
The Swarojgar Credit Card Yojana comes with several attractive features:
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Loan Type: Holders are allowed to take composite loans including cash credit and term loans which gives more flexibility.
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Competitive Interest Rate: Credit cards also have low charges as far as interest rates on loans are concerned thereby making it easy for MSME entrepreneurs to access credit.
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Flexible Repayment Tenure: This aligns with the cardholders’ advantage because the funding comes with flexible payment timelines with term loans tenable for up to five years.
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Validity: This card can be used for five years provided other accounts are being operated to the satisfaction of the bank and its renewal will done every year through the renewal process.
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Cheque: Swarojgar Credit Card Yojana The borrower who is interested in taking the Swarojgar credit card must fulfil certain conditions to apply for it; Otherwise, he will not qualify for the card.
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Objectives
The Swarojgar Credit Card Scheme is another govt scheme whose purpose is to offer loans to small artisans, rickshaw owners, and others in self-employment business through term loans and revolving cash credit.
Types Of Loans Offered
The Swarojgar Credit Card Scheme provides three types of loans: Joint (Composite), Term, and Revolving Fund.
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Joint (Composite) Loan is a cash credit and term loan facility combination.
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Term Loan: For investment purposes, used to be repayable within five years.
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Revolving Fund: Facilities the periodic fluctuations in working capital requirements.
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Loan Limit
This is between ₹15000 to ₹25000 and the general loan limit is ₹25000 per borrower but can be allowed up to ₹ 25000 in special circumstances. The limit is agreed based on the working capital requirement of the borrower and its ability to repay.
To Understand this information in a better way, refer to the below-mentioned table:-
| Loan Amount | General Loan Limit | Special Circumstances Limit | Criteria for Limit Approval |
|---|---|---|---|
| ₹15,000 to ₹25,000 | ₹25,000 per borrower | Up to ₹25,000 in special cases | Based on borrower's working capital needs and repayment ability |
Interest Rate
The interest rate is at 11.5% per month and is adjustable.
Validity
The offered loan can be used for up to five years if everything in the account is done correctly. It is renewed annually with just a rudimentary cheque, provided the account has been active periodically throughout the year.
Area of Operation
It is targeted for use by different beneficiaries like people in small-scale artisanal businesses, handloom operators, and micro-entrants in both urban and rural or semi-urban regions. They are effected through all the branches of the UCO Bank excluding the branches in metros.
Credit Limit Assessment
The credit limits are done in terms of investment needed for term loans and balance available for cash reflow revolving credit. There is a provision for an assessment of the operating cycle and nature of investments.
Margin/ Subsidy
The margin or subsidy for the govt scheme follows the Head Office guidelines and is not connected to any other subsidy programs.
Security
There is no condition of collateral for the Swarojgar Credit Card but the assets created out of bank finance have to be hypothecated.
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Eligibility Criteria
While no specific eligibility criteria are mandated by NABARD, the Swarojgar Credit Card is generally available to:
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SMALL ARTISANS AND HANDLOOM WEAVERS.
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Fishing industry workers and services industry workers.
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These can be summarised as follows; Rickshaw owners and micro-entrepreneurs.
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Corporate self-employed persons and corporate self-help organisations.
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The priority sector is the focus of today’s discussion about the concerns and challenges small businesses face.
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Mode Of Operation
It is thus up to the borrowers how they want to work the credit facility whether for term loans or working capital. The official short-term credit is awarded after a duly determined and approved amount and each of the beneficiaries is given an identity card which is laminated and in the form of a credit card and a passbook. Such requires making regular operations happen via the issuing branch.
Documents Required
The required documentation varies by income source and employment type but generally includes:
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Address Proof: They could be anything from ration cards, electricity bills, etc.
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Income Documents: Pay stubs, income tax receipts, bank statements, etc.
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Conclusion
The Swarojgar Credit Card is a useful tool for start-up borrowers involved in small-scale businesses and artisans, as it facilitates easy credit and repayment methods. If you meet these conditions, you should apply for this credit card to develop your opportunities and successfully realise your objectives in the sphere of enterprise.
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Government Sources
Official Website: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=1373
RBI Guidelines: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/39558.pdf
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