GCC stands for General Credit Card in banking. It is a special type of credit facility provided under the Kisan Credit Card (KCC) scheme to help non-farming rural customers meet their financial needs. Introduced by the Reserve Bank of India (RBI), the GCC is designed to offer hassle-free credit to rural households, small businesses, and individuals who require funds for daily expenses, small purchases, or livelihood activities.
What Is a General Credit Card (GCC)?
A General Credit Card is a simplified credit system that allows rural customers to borrow up to a fixed limit (usually up to ₹25,000, though banks may vary this limit) without strict documentation requirements. Unlike regular credit cards, GCC is not meant for shopping malls or online purchases but for meeting essential household or business needs.
It is part of the financial inclusion initiative to ensure that underserved rural populations have access to formal banking credit instead of depending on moneylenders.
Key Features of GCC
1. Easy Access to Credit
Customers can get a GCC with minimal paperwork. The procedure is simple, making it suitable for low-income groups.
2. Flexible Usage
The borrowed amount can be used for various purposes such as:
- Household expenses
- Medical needs
- Small business investments
- Repair and maintenance
- Educational costs
3. Low Interest Rates
Compared to informal lenders, the interest rates on GCC loans are much lower, making them affordable for rural borrowers.
4. No Collateral Required
Most banks issue GCCs without asking for security or collateral, making it accessible to a larger population.
Benefits of GCC in Rural Banking
The General Credit Card plays an important role in promoting financial inclusion. It encourages rural families to use banking services and reduces dependence on cash lenders. It also helps individuals meet urgent needs without falling into debt traps.