The Central Government is offering a special credit card for micro enterprises with a credit limit of up to ₹5 lakh.
The scheme is aimed at helping small businesses get easy access to working capital while also encouraging digital payments.
The card is available under the Micro Enterprise Credit Card (ME-Card) Scheme for eligible businesses.
Who can apply for the ME-Card?
To apply, a business must be registered on the Central Government’s Udyam Portal.
After registration, the concerned bank or lender will check the applicant’s credit profile before deciding whether to issue the card and what credit limit to provide.
The card offers a pre-approved revolving credit limit of up to ₹5 lakh.
There is no joining fee for first-time applicants. The annual fee is limited to 1% of the card limit or ₹1,000, whichever is lower.
The application process is designed to be simple. It uses UPI, the Account Aggregator framework,
and a common digital application form, reducing paperwork and helping speed up approvals. Interest rates will be decided by banks as per RBI guidelines.
How can businesses use this credit card?
The ME-Card is meant to help businesses manage their day-to-day expenses.
It can be used to buy raw materials, increase inventory, pay regular business costs, or handle temporary cash shortages.
Unlike a regular term loan, this card provides revolving credit. This means businesses can borrow within the approved limit, repay the amount, and use the available credit again whenever needed.
Announced in Union Budget 2025
Finance Minister Nirmala Sitharaman announced the ME-Card scheme during the Union Budget 2025-26,
presented on February 1, 2025. The government had planned to issue 10 lakh (1 million) such credit cards in the first year.
At the same time, the government also revised the definition of MSMEs.
For micro enterprises, the investment limit has been increased from ₹1 crore to ₹2.5 crore, while the turnover limit has gone up from ₹5 crore to ₹10 crore.
For small enterprises, the limits have been raised to ₹25 crore investment and ₹100 crore turnover.
For medium enterprises, the new limits are ₹125 crore investment and ₹500 crore turnover.
