Good news for common people. The Narendra Modi government has rolled out a bunch of initiatives over the past decade to support small businesses. You can get help from the government for skill development and also take advantage of loan schemes like Mudra. In this year’s budget, they even announced a new credit card. So, who can apply for it? Let’s dive in.
What did the finance minister say?
During the budget presentation on February 1, Union Finance and Corporate Affairs Minister Nirmala Sitharaman shared the news. She mentioned that they will introduce special credit cards with a limit of Rs 5 lakh specifically for micro enterprises registered on the Udyam portal. Plus, they plan to issue 10 lakh cards in the first year.
How to register?
To get started, head over to the Udyam portal at msme.gov.in. Click on the Quick Links section, then select Udyam Registration. You’ll find all the details about the documents you need and the eligibility criteria. Just follow the steps to register. Remember, the credit card option is available for registered micro enterprises.
Other announcements in the budget
The credit guarantee for micro and small enterprises has been bumped up from Rs 5 crore to Rs 10 crore, which will allow for an extra Rs 1.5 lakh crore in credit over the next five years. Additionally, the guarantee for startups is set to double from Rs 10 crore to Rs 20 crore, with a lower fee of 1% for loans in 27 priority sectors. On top of that, exporting MSMEs will benefit from term loans of up to Rs 20 crore with an increased guarantee cover.