In Budget 2025, a big announcement has been made for the MSME sector – MSME Credit Card Scheme. Under this scheme, 10 lakh micro enterprises registered on Udyam Portal will be given a credit card with a limit of ₹5 lakh. This step will make financial support easy for small businesses and solve the problem of working capital.

MSME Credit Card: What is special?

✅ MSME registered on Udyam Portal will get a credit card.

✅ The credit limit of every card will be ₹5 lakh.

✅ Small businesses will be able to get instant funds.

✅ Credit guarantee cover has been increased from ₹5 crore to ₹10 crore.

✅ Possibility of additional loan of ₹1.5 lakh crore in next 5 years.

Why is this deal beneficial for MSME?

1️⃣ Tension of working capital will end – money will be available immediately to run the business.

2️⃣ Financial Inclusion – Small businesses will be able to get loan without much paperwork.

3️⃣ Loan process will be easy – MSME will have less trouble in taking loan from bank.

4️⃣ Bureaucracy will be less – possibility of loan approval will increase fast.

5️⃣ Benefit of low interest rate – Government can keep the interest rate in favor of MSME.

How will you get a credit card?

✔️ First of all, MSME registration will have to be done on Udyam Portal.

✔️ This credit card will be given to 10 lakh micro businesses selected by the government.

✔️ These cards will be issued through banks and financial institutions.

✔️ Business owners will be able to withdraw money immediately according to their needs from this card.

What are the challenges?

⚠️ Loan distribution process will have to be made more easy.

⚠️ Interest rate will have to be kept in favor of MSME.

⚠️ Eligibility criteria should be simple and MSME-friendly.

Conclusion

The MSME sector is the backbone of the Indian economy, and this credit card scheme will make financial help easy for small businesses. If implemented correctly, this scheme will prove to be a game changer for MSME and will boost the growth of small businesses in India.