- The Micro Credit Card Scheme was launched on 25 May 2026 for Udyam-registered micro enterprises.
- Eligible businesses can access a customised RuPay business credit card with revolving credit of up to ₹5 lakh.
- The credit facility receives 75% guarantee coverage under CGTMSE without mandatory primary security.
- The government provides a joining-fee waiver for the first 10 lakh customers, up to ₹500 per RuPay card.
- Applicants can enquire about the facility through participating banks, including SBI, Canara Bank and Indian Bank.
- Credit Card for Micro Enterprises (CCME)
- For assistance, call 1800 222 659 or 022-6722 1553 (10 AM–6 PM).
- Department of Financial Services, Ministry of Finance, Government of India
- Phone: 011-23347571 (Industrial Finance Section)
- Email: jsif-dfs@nic.in
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Summary of the Scheme
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|---|---|
| Name of Scheme | Micro Credit Card Scheme for Micro Enterprises |
| Launch Year | 2026 |
| Benefits | Customised RuPay business credit card with a credit limit of up to ₹5 lakh and 75% credit guarantee coverage. |
| Beneficiary | Udyam-registered micro enterprises across India. |
| Nodal Agency | Department of Financial Services, Ministry of Finance |
| Subscription | Subscribe here to get Update Regarding Scheme |
| Mode of Apply | Online through the JanSamarth Portal or through participating banks. |
Micro Credit Card Scheme for Micro Enterprises
Micro enterprises need regular working capital for raw materials, supplier payments, and stock, but formal bank credit is hard to get without assets or a long credit history. The Micro Credit Card Scheme for Micro Enterprises gives eligible Udyam-registered businesses a customised RuPay business credit card with revolving credit of up to ₹5 lakh, backed by a government guarantee and with no mandatory primary security. It was announced in the Union Budget 2025-26 on 1 February 2025 and formally launched on 25 May 2026 by Union Finance Minister Nirmala Sitharaman at SIDBI’s 37th Foundation Day in Mumbai. The Department of Financial Services (DFS), Ministry of Finance, implements it. The Budget set a first-year target of 10 lakh cards.
Key Benefits
- Revolving credit limit of up to ₹5 lakh, subject to the bank’s assessment. You can use the limit, repay, and use it again.
- No mandatory primary security
- 75% credit guarantee under CGTMSE
- Joining fee waived for the first 10 lakh customers, with the government reimbursing up to ₹500 per RuPay card
- Supports digital business payments, including UPI where the issuing bank enables it
- For recurring working capital needs, without applying for a fresh loan each time
The card is for genuine business expenses only, such as raw materials, supplier payments, and other working capital needs. It is not for personal spending.
Limits, Rates, and Charges Vary by Bank
| SBI | Indian Bank | Canara Bank | |
|---|---|---|---|
| Credit limit | ₹50,000 to ₹5 lakh | ₹10,000 to ₹5 lakh | Up to ₹5 lakh, based on request, existing working capital limit, and turnover |
| Interest-free period | Up to 50 days | Check with bank | Check with bank |
| Rate after free period | Check with bank | Check with bank | APR not above 18% where guarantee coverage applies |
Fees (per Canara Bank’s published terms):
- Annual fee in later years: capped at 1% of the card limit or ₹1,000, whichever is lower
- CGTMSE guarantee fee: 0.55% of the card limit, payable by the customer, with no risk premium
These figures are not the same across all lenders, so confirm the interest rate, free credit period, annual fee, and guarantee fee with your bank before accepting a card.
How the Guarantee Works
CGTMSE covers 75% of the amount in default or the card limit, whichever is lower, according to Canara Bank’s terms. Canara states the guarantee must be obtained before the card is activated.
The guarantee protects the lender. It is not a grant or payment to you, and it does not cancel your obligation to repay the amount used, with interest and charges.
Who Can Apply?
- A business registered on the Udyam portal and classified as a micro enterprise
- Under the revised MSME classification from 1 April 2025: investment in plant and machinery or equipment of up to ₹2.5 crore and annual turnover of up to ₹10 crore
- Manufacturing and service businesses can both qualify
- Must satisfy the bank’s credit assessment, which may consider credit history, repayment record, account conduct, and repayment capacity
Udyam registration does not guarantee approval. Some banks may offer the card only to existing borrowers or customers with an established banking relationship.
Documents You May Need
- Udyam Registration Certificate showing micro classification
- PAN of the business or proprietor
- Aadhaar or another valid ID
- Business address proof
- Recent business bank statements
- Business details, including nature of activities and operating address
- GST registration certificate and returns, if applicable
- Income Tax Returns or financial statements, if requested
- Any other documents the bank asks for
How to Apply
- Make sure your Udyam Registration Certificate shows micro classification.
- Ask your existing bank branch whether it offers the Micro Credit Card. SBI also lists the JanSamarth Portal as an application route.
- Get the bank’s application form and document checklist. Processes differ between banks.
- Submit your Udyam details, PAN, ID, bank statements, and other requested documents.
- Bank assessment: The bank verifies your business and assesses your credit profile and repayment capacity.
- Approval: The bank tells you the sanctioned limit and the interest, repayment, and card charges before issuing the card.
Receiving the full ₹5 lakh is not guaranteed.
Rules for Using the Card
- Business expenses only. No personal or non-business transactions.
- One card per enterprise, per published bank terms.
- Repay by the due date on your statement to avoid interest and late payment charges.
- Revolving facility: Repaid credit can be used again, within the approved limit.
- Read the bank’s Most Important Terms and Conditions (MITC) before using the card.
Contact
Credit Card for Micro Enterprises (CCME) assistance
Phone: 1800 222 659 or 022-6722 1553 (10 AM to 6 PM)
Department of Financial Services, Ministry of Finance
Phone: 011-23347571 (Industrial Finance Section)
Email: jsif-dfs@nic.in
Address: Jeevan Deep Building, Sansad Marg, New Delhi 110001
For application or eligibility questions, contact your chosen participating bank. The DFS numbers are for its Industrial Finance section and are not a dedicated scheme helpline.
Limits, rates, and procedures differ by bank and can change, so confirm the details with your bank and the Department of Financial Services before applying.