Modi Govt Launches ₹5 Lakh Credit Card For Small Businesses, Know How It Can Benefit You

New Delhi: The Indian government is now offering a special credit card called the ME-Card (Micro Enterprises Card) to support small businesses. This was announced by Finance Minister Nirmala Sitharaman in the Union Budget. The ME-Card will provide small businesses with credit up to Rs 5 lakh to help manage their daily business needs.

Who Can Get This Card?

The ME-Card is meant for micro enterprises that are registered on the Udyam Portal. These are small businesses working in sectors like manufacturing, services, and trade. In the first year, the government plans to issue 10 lakh ME-Cards.

What Is the Benefit of This Card?

With the ME-Card, small business owners can easily get money for:

- Buying inventory

- Covering business expenses

- Meeting working capital needs

The goal is to make the loan process easier and faster for small businesses, helping them grow and become stable.

Digital Payments and Credit Guarantee

The ME-Card will work with UPI and the National Credit Guarantee Platform, which means payments and loans will be more digital and secure. Banks will process the loans based on their own lending policies and may charge a processing fee.

Also, the credit guarantee cover has been increased from Rs 5 crore to Rs 10 crore, giving more support to banks and allowing them to offer easier loans.

Extra Credit for MSMEs

Thanks to this policy, the government expects that Rs 1.5 lakh crore of extra credit will be made available to small businesses over the next five years. This will give a big boost to India’s MSME sector.

Better Support for Export Businesses

Export-focused MSMEs can now get term loans up to Rs 20 crore, helping them expand into global markets. The government wants to increase India’s exports and make local businesses strong enough to compete internationally.

New Limits for Investment and Turnover

The government has also increased the limits for how MSMEs are defined. The investment limit has gone up by 2.5 times and the turnover limit by 2 times. This means more growing businesses will now be able to enjoy the benefits given to MSMEs.

Published on: Wednesday, October 15, 2025, 10:53 AM IST