Over the past decade, the Narendra Modi-led central government has introduced several schemes aimed at boosting small businesses. These initiatives provide assistance for skill development and offer financial support through schemes like the Mudra loan. In the latest general budget, the government has announced the introduction of a new credit card specifically designed for micro enterprises. Let’s understand who can apply and how to benefit from this scheme.
Finance Minister’s Announcement
During the Union Budget presentation on February 1, Finance Minister Nirmala Sitharaman unveiled the plan for specialized credit cards tailored for micro enterprises. She stated that businesses registered on the Udyam portal would be eligible for these customized credit cards, which come with a credit limit of up to Rs 5 lakh. Additionally, the government aims to issue 10 lakh such cards in the first year of the scheme.
How to Register for the Scheme
To take advantage of this new initiative, businesses must register on the Udyam portal by following these steps:
- Visit the official website: msme.gov.in.
- Navigate to the ‘Quick Links’ section and click on ‘Udyam Registration.’
- Provide the required details and upload necessary documents as per the portal’s instructions.
- Complete the registration process to become eligible for the credit card facility.
This credit card scheme is exclusively available for micro enterprises that have completed their registration on the Udyam portal.
Additional Announcements in the Budget
Along with the introduction of credit cards, the government has made several other announcements to strengthen micro and small businesses:
- Increased Credit Guarantee Cover: The credit guarantee cover for micro and small enterprises has been increased from Rs 5 crore to Rs 10 crore, facilitating an additional credit of Rs 1.5 lakh crore over the next five years.
- Enhanced Startup Support: The guarantee cover for startups has been doubled from Rs 10 crore to Rs 20 crore. Moreover, the loan fee for startups operating in 27 priority sectors has been reduced to 1%.
- Support for Exporting MSMEs: Exporting MSMEs will now benefit from term loans of up to Rs 20 crore with an increased guarantee cover.
These measures aim to provide substantial financial assistance to small businesses, helping them expand and contribute more significantly to the Indian economy.
With these new policies, the government continues to foster entrepreneurship and encourage small businesses to thrive in a competitive market.