The objective of the scheme is to provide hassle-free credit to banks’ customers in rural and semi urban areas based on the assessment of cash flow without insistence on security, purpose or end-use of the credit. This is in the nature of overdraft or cash-credit with no end-use stipulations.
Nature of financial accommodation: Cash withdrawal
The credit facility extended under the Scheme will be in the nature of revolving credit. The GCC-holder will be entitled to draw cash from the specified branch of bank up to the limit sanctioned and in fact, this may be the only feasible mechanism in many cases.
Quantum of limit
Banks would have flexibility in fixing the limit based on the assessment of income and cash flow of the entire household. However, the total credit facility under GCC for an individual should not exceed Rs.25, 000/-.
Interest rate on the facility is charged as per the policy of the Banks from time to time.