Credit Cards Scheme: The central government has several schemes that help people access funds for their businesses. Under some schemes, the government also issues various types of credit cards. The Pradhan Mantri Mudra Yojana (PMMY) and the Kisan Credit Card (KCC) are similar schemes. Furthermore, UPI-linked credit cards will be offered under the PM-SVANidhi scheme. Through this card, the government provides easy access to loans.
Mudra cards are also offered under the Pradhan Mantri Mudra Yojana (PMMY), launched by Prime Minister Narendra Modi in 2015. Loan limits under this scheme range up to Rs 20 lakh across various loan categories. Mudra loans are available in four categories: Shishu, Kishor, Tarun, and Tarun Plus.
These are the 4 categories
Shishu: Loans up to Rs 50,000/-
Kishor: Loans available from Rs 50,000/- to Rs 5 lakh
Tarun: Covers loans from Rs 5 lakh to Rs 10 lakh
Tarun Plus: Loans from Rs 10 lakh to Rs 20 lakh
Kisan Credit Card
Kisan Credit Cards (KCC) were introduced for farmers. This is a type of credit card that allows farmers to withdraw money immediately for purchases such as fertilizers, seeds, pesticides, diesel, animal husbandry, and dairy. Kisan Credit Cards typically have a limit of up to Rs 3 lakh, and the interest rate is very low. In many states, farmers receive an interest subsidy of up to 4% for timely payments. KCC cards can also be used at ATMs, providing instant cash access to farmers, eliminating the need to visit a bank.
PM-SVANidhi
In February’s Union Budget, the government announced the availability of UPI-linked RuPay credit cards under this scheme. The limit is set at Rs 30,000. The introduction of UPI-linked RuPay credit cards will provide street vendors with instant access to loans to meet any emergent business or personal needs. Under the scheme, the government provides loans ranging from Rs 15,000 to Rs 50,000.