Grameen Credit Score for Rural Lending:
The government has mandated banks to adopt the Grameen Credit Score (GCS) as the default assessment tool for rural borrowers to enhance financial inclusion with a major focus on first-time borrowers who lack a traditional credit history.Grameen Credit Score Announced in the Union Budget 2025-26, the Grameen Credit Score is an alternative credit scoring model designed to assess the creditworthiness of individuals who lack a traditional formal credit history—often referred to as the “unbanked” or “underbanked” population. Unlike traditional credit scores (like CIBIL) that rely heavily on bank loans and credit card repayment history, this model looks at social and behavioural data (social collateral like trust and pressure from a peer group) within a community or microfinance framework.
