There are some schemes of Narendra Modi government under which credit cards are being introduced. There is also such a scheme for micro, small and medium enterprises. The limit of the credit card available under this is Rs 5 lakh.
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SME Credit Cards: The Narendra Modi government at the Centre has launched many such schemes during its tenure so far under which people get loans for business. At the same time, there are some schemes under which credit cards are being introduced. There is also such a scheme for micro, small and medium enterprises (MSME).
What is the limit
In fact, while presenting the budget in the month of February, Finance Minister Nirmala Sitharaman had said that credit cards with a limit of up to Rs 5 lakh will be introduced for micro enterprises registered on the Udyam portal. The Finance Minister had said that 10 lakh cards will be issued in the first year. This step has been taken with the aim of strengthening India’s micro, small and medium enterprises (MSME) sector.
Features of SME Credit Card
These credit cards provide money to businesses to manage their day-to-day work. For example, it is helpful in purchasing equipment, goods and meeting other related business expenses. These cards also help in keeping track of business expenditure. Thus, monitoring and regulation of expenses becomes easy.
Many facilities are available
Many SME credit cards offer rewards, cashback and other facilities. Some of these cards offer facilities like term loan, relief on re-payment. Using business credit cards responsibly can help SMEs build a strong credit history. Under this, some credit cards offer interest-free periods of up to 45-50 days, giving businesses working capital in the short term. Some of these cards also offer EMI services at competitive interest rates.
Let us tell you that many banks in India offer credit cards designed for SMEs. These include SBI, HDFC, Axis Bank, Kotak, Standard Chartered and IndusInd Bank.
