Key Features of SME Credit Cards
1. Credit Limit of ₹5 Lakh
- Tailored to micro enterprises with a credit limit of ₹5 lakh each.
2. Separation of Business & Personal Finances
- Helps small business owners keep their personal and business finances separate.
3. Easy Access to Funds
- Provides quick access to funds for day-to-day operations, like purchasing goods and covering business expenses.
4. Tracking Expenditures
- Simplifies tracking of business expenditures, making it easier to monitor and regulate spending.
5. Rewards & Perks
- Many cards offer rewards, cashback, and additional perks, including loans and repayment flexibility.
6. Building a Strong Credit History
- Responsible use of SME credit cards can help businesses build their credit score, paving the way for future financing options.
7. Customized Credit Limits
- As per the announcement, 10 lakh cards will be distributed in the first year, with a ₹5 lakh limit for micro enterprises registered on the Udyam portal.
8. Interest-Free Period & EMI Options
- Some cards provide up to 45-50 days of interest-free periods, along with EMI options at competitive rates.
9. Inclusive Economy
- The initiative will contribute to building a more inclusive digital lending ecosystem, even at the grassroots level.
Eligibility for SME Credit Cards
- Credit Score: Generally, a good credit score (640-699) is required.
- Credit History: Applicants should have a long credit history, with no defaults, and regular loan repayments.
For detailed eligibility criteria, contact the customer support system of the concerned bank and refer to their official website, as terms may vary between banks.
Where to Get SME Credit Cards
- Banks Offering SME Credit Cards:
- SBI, HDFC, Axis Bank, Kotak, Standard Chartered, and IndusInd Bank, among others.
Why Were SME Credit Cards Established?
These cards are designed to protect business interests by helping small business owners separate their personal and business finances, leading to better financial management.