Govt to launch Credit Cards for small businesses with Rs 5 Lakh limit from April

STC NEWS DESK
FEBRUARY 20 (STC): Keeping its promise announced in Budget 2025, the government is all set to issue credit cards with a limit of Rs 5 lakh from April to micro-entrepreneurs.
According to the reports, this facility will potentially provide micro-units with an additional Rs 30,000 crore in funding over the next few years, supplementing other loan options for business expansion.
The scheme envisages small businessmen to register to benefit from this scheme and acquire the credit card.
This credit card, with its Rs 5 lakh limit, will be available to individuals operating shops and engaging in small-scale manufacturing. However, these business owners will be granted credit cards following an assessment of their UPI transactions, bank statements, and business conditions. The card will have a one-year validity period.
Only those with an annual turnover between Rs 10-25 lakh will qualify for this credit card.
Notably, small businessmen have to register on the Udyam portal. Subsequently, they can obtain the MSME credit card. (STC)