Bhabishyat Credit Card – Features, Eligibility & Application Process

A young man named Arjun resided in the busy town of Siliguri, which can be found deep in the Himalayan foothills. At 25, Arjun aspired to start his small dairy and micro business supplying his neighbourhood with fresh milk. 

But like many other would-be business owners in West Bengal, he had to overcome the obstacle of finding the money he needed to realise his dream.

Arjun discovered the Bhabishyat Credit Card Scheme, a program the West Bengal government started on April 1, 2023, one evening while he was at a community gathering. The program, created to promote self-employment among young people in the state, provided loans of up to ₹ 5,00,000 to people between the ages of 18 and 45 so they could start with microbusinesses. Arjun was intrigued and decided to investigate this possibly further.

He went to Canara Bank’s local branch the next day, where the Bhabishyat Credit Card Scheme was implemented. According to the bank official, the program aimed to give young entrepreneurs institutional financing to start businesses that would generate manufacturing, services, and trading revenue and eventually become self-sufficient.

The official added that the loan would be collateral-free and supported by credit guarantee coverage. The government would offer a margin money subsidy of up to 20% of the project cost, with a ceiling of ₹25,000.

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Inspired by this knowledge, Arju collected the required paperwork, which included his bank account information, proof of address, an Aadhar card, and a thorough project report for his dairy farm. Following a rigorous verification process, his loan was authorised after he submitted his application.

After obtaining the money, Arjun bought the livestock and equipment he needed to launch his dairy farm.

After a few months, Arjun's business took off. His dairy products were well-liked in Siliguri, so he began supplying nearby towns. In addition to giving him the money he needed, the Bhabishyat Credit Card Scheme gave him the self-assurance he needed to follow his business goals.

Many young people in his town quickly found encouragement in Arjun’s success story. He frequently talked about his experiences, highlighting the value of government programs like the Bhabishyat Credit Card Scheme in empowering young people and promoting West Bengal’s economic development.

Key Highlights of Bhabishyat Credit Card

There are particular highlights to be kept in mind related to the Bhabishyat Credit Card:

• You can avail yourself of loans up to ₹ 5 lakh to establish or expand your businesses.
  
  
• Individuals aged between 18 and 45 years are eligible to apply.
  
  
• The scheme is open to professionals, including motor transport workers and other eligible individuals.
  
  
• The loans are collateral-free, eliminating the need for guarantors. The government of West Bengal provides a 100% guarantee for the loan amount.
  
  
• The scheme aims to sanction loans to 2 lakh beneficiaries yearly, promoting widespread entrepreneurial growth across the state.
  
  

The objective of the Bhabishyat Credit Card Scheme

The Bhavisyat Credit Card program’s goal is to give emerging business owners financial support so they may launch their ventures. The program’s primary goal is to help young people become completely independent and self-sufficient.

This program will provide 5 lakh rupees in financial assistance. The program was introduced for those between the ages of 18 and 55. The government only offers a 4% annual subsidised interest rate. The plan will be beneficial for creating and expanding employment possibilities in the state.

Benefits of Bhabishyat Credit Card

The West Bengal government launched the Bhavisyat Credit Card Scheme (WBBCCS), which provides a lot of advantages to business owners:

Subsidised Interest Rate: Borrowers benefit from a reduced interest rate of 4% per annum on the loan amount.

Government Subsidy: The scheme provides a subsidy in the form of a margin money contribution at 10% of the project cost, with a maximum limit of ₹25,000.

Limitation for Bhabishyat Credit Card

Limited Awareness: It’s possible that many businesses are unaware of the programs and their advantages.

Eligibility Restrictions: Many businesses may not be able to participate in the program due to the age and training requirements.

Regional Limitation: Since this program is only available in West Bengal, it cannot be used in other regions.

Bhabishyat Credit Card Fees and Other Charges

The Bhabishyat Credit Card Scheme (WBBCCS) offers loans up to ₹5,00,000 without collateral in an effort to assist young business owners in West Bengal. Even though the program has several advantages, it's important to understand the costs and fees involved:

Interest Rate: Borrowers are charged an effective interest rate of 4% per annum, after accounting for an interest aid of up to 8.5% per annum provided by the government.

Annual Guarantee Fee (AGF): As per its regulations, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) charges an AGF on its portion of guarantee coverage. Notably, the supplementary guarantee provided by the West Bengal government does not have an additional AGF.

Margin Money Contribution: The government provides a subsidy in the form of a margin money contribution at 10% of the project cost, with a ceiling of ₹25,000. This subsidy reduces the upfront financial burden on the borrower.

The bank handling your loan application should be consulted for a detailed explanation of all applicable fees, as some may vary based on the bank’s policies.

Eligibility Criteria for Bhabishyat Credit Card

Step 1: You need to be an Indian national and must be residing in West Bengal for 10 years.

Step 2: The second criterion is if you are a Motor Transport Worker, Building and other construction workers aged 18-45 years.

Step 3: One family from one person is eligible, where ‘family’ means self and spouse.

Step 4: He or she must have finished state-approved entrepreneurship training or other skill-development courses.

Required Documents to Apply for Bhabishyat Credit Card

Documents Required:

1. Proof of Photo Identity:
   • Aadhaar Card
   • Voter ID Card
   • Passport
   • Driver’s License, etc.
     
     
2. Proof of Residence:
   • Recent utility bill (electricity, water, etc.)
   • Bank statement with the address, etc.
     
     
3. Proof of Age:
   • Birth certificate
   • School leaving certificate
   • Aadhaar card (if age is mentioned)
     
     
4. Detailed Project Report:
   • A report detailing the project you intend to undertake with the credit
     
     
5. Additional Documents (if applicable):
   • Any other documents as required in the application form.

Bhabishyat Credit Card Pros and Cons

The West Bengal government launched the Bhabishyat Credit Card Scheme with the goal of assisting MSEs by offering loans up to ₹5 lakh without the need for collateral. The goal of this program is to encourage self-employment and state economic expansion.

Pros:

• Collateral-Free Loans: Collateral is not required for entrepreneurs to obtain loans up to 5 lakh, which lowers the threshold for those without significant assets.
  
  
• Subsidised Interest Rates: The scheme offers subsidised loans, making borrowing more affordable for small business owners. 
  
  
• Simplified Application Process: The application process is streamlined with reduced documentation requirements, facilitating more straightforward access to funds for eligible applicants. 
  
  
• Government Subsidy: The government provides a subsidy in the form of a margin money contribution, covering 10% of the project cost up to a maximum of ₹25,000. 
  
  
• Financial Inclusion: By targeting micro and small enterprises, the scheme promotes financial inclusion and supports entrepreneurs who may face challenges in securing traditional loans. 
  
  

Cons:

• Eligibility Restrictions: The scheme is limited to residents of West Bengal aged between 18 and 45 years, which may exclude older entrepreneurs or those from other regions. 
  
  
• Mandatory Training Requirement: The requirement that applicants have finished state-approved training programs in entrepreneurship or skill development may restrict admission for those who lack these credentials.
  
  
• Limited Awareness: Potential beneficiaries may be unaware of the scheme, leading to underutilisation of the available benefits.
  
  
• Regional Limitation: The program's benefits are not extended to entrepreneurs in other areas because it is only offered to companies that operate in West Bengal.
  
  

How to Apply for a Bhabishyat Credit Card

Step 1: Visit the official website of the Bhabishyat Credit Card.

Step 2: Scroll down and click the "Apply Online" option.

Step 3: After clicking "Apply Online," a new page will open. Scroll down to find options such as guidelines, attachments, and blank forms.

Step 4: Click on the "Blank Form" option. A pop-up will appear asking, “Not Registered? Click here to Register.”

Step 5: Click on the registration link, and a new page will open where you must fill in your full name, email, and mobile number. Then, click the box to agree to the privacy policy, terms, and conditions.

Step 6: You will receive an OTP for mobile number verification. Enter the OTP and click on "Register" at the bottom.

Step 7: You will receive a message confirming successful registration and prompting you to set your password.

Step 8: Enter your desired password and confirm it. Then click "Create Password."

Step 9: A confirmation message will appear indicating that your registration was successful and advising you to log in with your new password.

Step 10: Click on the "Login" button. A new pop-up will appear.

Step 11: Fill in the required fields, such as your username/email/mobile number. Enter your password and image code. Tick the box that says “Remember Me,” then click on "Sign In."

Step 12: A new page will open, stating that you have not submitted any applications yet. It will prompt you to click here to fill out the form.

Step 13: Click on the link to fill out the application form.

Step 14: Enter the full name of the applicant, the father/mother/guardian’s name, the applicant's date of birth, gender, the applicant’s Aadhaar number, the spouse’s name (if married), and the entire communication address (including district, city, police station, post office, and mobile number).

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Step 15: Enter the full address of the project location (with mobile number), educational qualification, applicant category, and project name. You will be given options, such as AC/Freeze Repairing, Automobile Repairing and Servicing, Bakery, Barber Shop, Beauty Parlour, Bicycle Repairing, Biscuit Distribution, Book Stationery, and more.

Step 16: Enter the project cost, the bank's name, and bank details (including the IFSC code and branch address).

Step 17: Select whether you have applied to the Karmyasathi Scheme by answering Yes or No.