The Narendra Modi government has launched several schemes to provide loans and credit facilities for business.
One such initiative is the introduction of credit cards for micro, small and medium enterprises (MSMEs).
Credit Limit and Availability
In the Union Budget presented in February, Finance Minister Nirmala Sitharaman announced that credit cards with a limit of up to ₹5 lakh will be issued to micro enterprises registered on the Udyam portal.
She also mentioned that 10 lakh credit cards will be issued in the first year. This step aims to strengthen the MSME sector and make business funding more accessible.
Key Features of SME Credit Cards
These credit cards provide financial support to businesses for managing daily operations, such as purchasing equipment, goods, or covering other expenses. They also make it easier to track and regulate spending.
Many SME credit cards come with additional benefits like:
Rewards, cashback, and offers
Relief on repayment and term loan options
Interest-free period of up to 45–50 days for short-term working capital
EMI facilities at competitive interest rates
Opportunity to build a strong credit history with responsible usage
Banks Offering SME Credit Cards
Several leading banks in India issue credit cards designed specifically for SMEs. These include:
SBI
HDFC Bank
Axis Bank
Kotak Mahindra Bank
Standard Chartered Bank
IndusInd Bank
