SME Credit Cards: A game-changer for small businesses in 2025—Here’s how | Mint
Source: Live Mint
Finance Minister Nirmala Sitharaman introduced customized credit cards for micro enterprises registered on the Udyam portal in her recent budget speech.
This step was taken with the objective of strengthening India’s Micro, Small and Medium Enterprises (MSME) sector. These cards will come with a credit limit of ₹5 lakh each.
These cards protect the business interests of small business owners by helping them manage a clear separation between personal and business finances.
What are the key features and benefits associated with these credit cards?
Availability to funds: SME credit cards provide businesses with access to funds for managing day to day operations. For example things like purchasing equipment, goods, and covering other associated business expenses.
Tracking of expenditure: These cards also help in tracking business expenditures. Thus making it easier to monitor and regulate spending.
Perks, rewards and other features: Several SME credit cards offer rewards, cashback and other perks. Some of these cards can provide term loans, repayment flexibilities etc.
Building of credit score: Now it is crucial to remember that using a business credit card responsibly can help SMEs build a strong credit history. Thus making it easier to explore other forms of financing in the future.
Customized credit limits: To provide much needed relief, the Finance Minister announced that customized credit cards with limits up to ₹5 lakhs will be issued to micro enterprises registered on the Udyam Portal. In the first year itself 10 lakh such cards are going to be distributed.
Interest-free period and EMI options: Some cards offer an interest-free period of up to 45-50 days, providing short-term working capital for businesses. Some of these cards also offer EMI services with competitive interest rates.inclusive economy: These cards hence will help in building a more inclusive economy. They will help in turning the process of physical lending into digital lending even at the grassroot level.
Where can these credit cards be obtained from?
Several banks in India offer credit cards specifically designed for SMEs, including SBI, HDFC, Axis Bank, Kotak, Standard Chartered, and IndusInd Bank.
For more details on the same aspirational individuals are advised to reach out to the designated banks and obtain further information with regards to the terms and conditions of the card.
For more details applicants should consult the customer support system of the concerned bank and refer to their official website. As different banks have different terms and conditions and they deal with each credit card applicants case on an individual basis.
(Note: Using a credit card carries its own set of risks)
