West Bengal Bhabishyat Credit Card Scheme – Department of Micro, Small & Medium Enterprises, Government of West Bengal

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West Bengal Bhabishyat Credit Card Scheme

Problem

• The reluctance of many bankers acts as a bottleneck for timely disposal.
• Entrepreneurs in rural areas are usually not conversant with banking rules.
• Bankers insist on CIBIL Score, which is not always available.
• The disposal of the application could not be undertaken in the stipulated time frame.
• Not setting up new enterprises.

Solution

• Sensitization of Bank Officials by the District MSME Officers may be arranged every month/fortnightly.
• Sufficient information regarding the bankability of a project and duty as a loaner can be disseminated to the entrepreneurs (financial literacy).
• The government has arranged a 100% loan guarantee in association with CGTMSE.
• Close monitoring and regular liaison with bank authorities for sponsored cases.
• Empowering women through mass participation.

Challenges

• Primarily bank officials were skeptical about the prospect of the scheme assuming huge NPA may be caused.
• Poor financial literacy of the targeted borrowers.
• Winning the confidence of banks.
• Assurance about repayment of loans.
• Explaining the prospects of the scheme.

Outcomes

• Urban and rural employment generation will be increased.
• As the scheme mainly concerns with micro enterprises (all economic activities), there is a possibility of mobilization of local resources.
• A considerable number of employment generations and mobilization of local recourses may ensure elevating income at the grass root level.
• Promoter’s contribution has completely been replaced by government subsidy.
• The government has ensured a 100 % Guarantee for the project cost to ease the bankers association with CGTMSE.

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Case Study

West Bengal Bhabishyat Credit Card Scheme

Summary

The scheme aims to provide the Youth of West Bengal, who have entrepreneurial skills and want to be self-reliant by setting up micro-enterprises, access to institutional finance for their credit needs. This will, in turn, facilitate the Youth to become self-employed, leading to income generation, wealth creation, and creation of further employment opportunities in rural and urban areas of the State.

Problems

There is a reluctance among many bankers, which acts as a bottleneck for timely disposal. Also, entrepreneurs in rural areas are usually not conversant with banking rules.

Solutions

Sensitization of bank officials by the District MSME Officers may be arranged every month / fortnightly. Sufficient information regarding the bankability of a project and duty as a loaner can be disseminated to the entrepreneurs (financial literacy).

Outcomes

Urban and rural employment generation will be increased. As the scheme mainly concerns with micro enterprises (all economic activities), there is a possibility of mobilization of local resources.

Challenges

Primarily bank officials were skeptical about the prospect of the scheme assuming huge NPA may be caused. Poor financial literacy of the targeted borrowers posed a challenge.

Innovation

Promoter’s contribution has completely been replaced by government subsidy. The government has ensured a 100 % Guarantee for the project cost to ease the bankers association with CGTMSE.

For more information, please contact:
Mr U Swaroop, Director at dir.msse-wb@nic.in

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