The central government will launch a new credit card scheme for micro-entrepreneurs starting in April 2025. As announced in the Union Budget 2025, small business owners will be eligible for credit cards with a limit of Rs 5 lakh, providing additional financial support for business growth.
This initiative is expected to inject Rs 30,000 crore into the micro-business sector over the next few years. The scheme aims to complement existing financial assistance programs, making it easier for small businesses to expand their operations.
Eligibility Criteria for Micro-Credit Card
To benefit from this scheme, small business owners must register and meet certain eligibility requirements. The key conditions include:
- Type of Business: The credit card is available for individuals running shops and small-scale manufacturing units.
- Transaction and Business Assessment: Applicants will undergo an evaluation based on UPI transactions, bank statements, and business performance.
- Turnover Limit: Only businesses with an annual turnover between Rs 10 lakh and Rs 25 lakh will qualify.
- Card Validity: The credit card will be valid for one year from the date of issuance.
How to Apply for the Micro-Credit Card
To apply for this government-backed credit card, micro-entrepreneurs must register on the Udyam portal. The process includes the following steps:
- Visit the official Udyam portal – msme.gov.in.
- Click on ‘Quick Links’ on the homepage.
- Select ‘Udyam Registration’ from the dropdown menu.
- Follow the instructions to complete the registration process.
Once registered, eligible business owners can apply for the MSME credit card and access financial assistance under this scheme.
Government’s Focus on Small Businesses
The Union Budget 2025 has introduced several measures aimed at supporting small businesses, farmers, and the middle class. Alongside the Rs 5 lakh credit card scheme, the budget also includes various financial concessions and schemes to strengthen economic growth at the grassroots level.
This initiative is expected to boost entrepreneurship, improve access to credit, and enhance the financial stability of micro-businesses across India.