💳 Govt Launches ₹5 Lakh ME‑Card for Micro Businesses on Udyam — Big Win for MSMEs!

General
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ndia’s Budget 2025 introduces the Micro Enterprise Credit Card (ME‑Card) — a ₹5 lakh credit card tailored for micro-businesses registered on the Udyam portal.

:small_blue_diamond: Key Highlights:

  • Credit Limit: ₹5 lakh per card
  • Target Beneficiaries: Micro‑enterprises on Udyam portal
  • Initial Issuance Goal: 10 lakh cards in the first year.

:counterclockwise_arrows_button: Why It’s a Game Changer

  • Instant working capital access with no collateral requirement.
  • Banks can leverage GST turnover and digital Udyam data for quick approvals.
  • Credit guarantee cover doubled from ₹5 cr → ₹10 cr under CGTMSE, unlocking ₹1.5 lakh crore in credit for micro/small businesses.
  • MSME classification limits raised: now ₹2.5 cr in investments & ₹10 cr turnover for micro-enterprises.

:receipt: How It Works:

  • Cards issued automatically via participating banks.
  • Transparent processing fee set by banks—not fixed by the scheme.
  • Interest rates expected around 8–10%, lower than typical business loans (~18–20%).

:white_check_mark: What This Means:

  1. Provides flexible capital with fast approval time.
  2. Reduces dependence on traditional term loans or high-interest credit.
  3. Empowers digital MSMEs and street vendors registered under Udyam.
  4. Helps streamline business finance and improve credit history access.
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Will this help your business scale faster?

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For many micro businesses, access to even ₹2–3 lakh in working capital can mean doubling inventory, upgrading tools, or managing seasonal cash flow. So yes — this can be a big unlock.