The Indian government is set to introduce credit cards with a limit of Rs 5 lakh for micro-entrepreneurs starting in April 2025. Announced as part of the Union Budget 2025, this initiative aims to provide an additional Rs 30,000 crore in funding to support small businesses.
Eligibility Criteria for the Rs 5 Lakh Credit Card
This new credit facility will be available to small business owners, including shopkeepers and small-scale manufacturers. However, to qualify, applicants must meet certain conditions:
- The credit card will be issued only after an assessment of UPI transactions, bank statements, and business performance.
- Businesses must have an annual turnover between Rs 10 lakh and Rs 25 lakh.
- The card will be valid for one year.
Registration Process for Small Business Owners
To apply for this credit card, business owners must register on the Udyam portal. The registration process is as follows:
- Visit the official Udyam portal at msme.gov.in
- Click on “Quick Links”
- Select “Udyam Registration”
- Follow the instructions to complete the registration
Government’s Focus on Small Businesses
The introduction of this credit card is part of a broader initiative to support micro-enterprises, farmers, and the middle class. The government has also announced several financial incentives and schemes to help small businesses grow and expand.